Share Transfer of Private company

Share Transfer of Private Limited company

	The procedure of making a Share transfer may seem easy and straight forward, but to be done correctly, it does not only involve having a stock transfer form signed. Entries must also be made in the company's Minute Book, Register of Transfers and Register of Members.

If the value given for the shares is subsequently found to be understated, the Revenue Commissioners have the power to impose surcharges. (S103 Finance Act 191) The old share certificate(s) need to be cancelled and new certificates issued under the company seal of the company. In case of loss of old share certificates, then an indemnity has to be completed. The Company's Memorandum & Articles must be inspected to see if there are any restrictions on the transfer of shares. The stock transfer form must then be sent for stamping by the Revenue Commissioners. It is important that you should submit the share transfer form immediately and accurately. The "market value" of shares in a private company is an area that is open to wide interpretation, and for this reason, the Revenue Commissioners strongly encourage the completion of a form SD4, when sending in stock transfer forms. This form allows them to make an assessment of the value of the shares being transferred and ensure that the correct duty is being paid. If they need further information, they will sometimes request that the last three years accounts of the Company in question be sent to them for consideration. We can attend to the company secretarial requirements in having shares transferred. A completed and signed Stock Transfer Form A completed and signed Form S.D.4 The company's combined company register and minute book Share Certificates for cancellation.