The following Corporate guidance note provides comprehensive and up to date legal information covering:
There are a number of circumstances in which shares in a company may be transferred, eg upon a sale of the shares, through the transmission of the shares by operation of law (eg upon the death or bankruptcy of a shareholder), by gift or upon the enforcement of a charge. For more information about the transmission of shares, see Q&A: Can personal representatives transfer shares in a company without a grant of probate?
It is most common for shares to be transferred upon a sale. A sale of shares will normally take place pursuant to the terms of a share purchase agreement or an option agreement.
A company may also buy back its own shares. For further information on share buybacks, see Practice Note: Share buybacks—a quick guide.
This Practice Note focuses on the transfer of the legal title in certificated shares upon a sale that is not a share buyback. For information about certificated shares, see Practice Note: Transfer of shares—law and procedure.
The transfer of shares in a listed company, an AIM company or a company with securities that are traded on any exchange is outside the scope of this Practice Note.
An unconditional contract for the sale of shares in a company could be a duly executed instrument of transfer, such as a stock transfer
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