Q&As

Is it possible to make a manuscript amendment to the consideration clause of a stock transfer form after signature?

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Published on LexisPSL on 16.11.2017

The following Corporate Q&A provides comprehensive and up to date legal information covering:

  • Is it possible to make a manuscript amendment to the consideration clause of a stock transfer form after signature?
  • Where the stock transfer form has taken legal effect
  • Where the stock transfer form has not yet taken legal effect

Is it possible to make a manuscript amendment to the consideration clause of a stock transfer form after signature?

The correct process to be followed to amend a stock transfer form (or any legal document) depends upon whether or not it has taken legal effect.

When making an amendment to a stock transfer form, it is important to remember that it will need to be acceptable to a number of parties with an interest in the relevant share transfer—the transferee, the transferor, the company secretary and directors of the company whose shares are being transferred and HM Revenue & Customs (HMRC).

In addition, where there is a share purchase agreement or other relevant documentation in place relating to the share transfer, the parties will need to ensure that the stock transfer form (including any amendment that is made to it) is consistent with such documents.

A stock transfer form may or may not be executed as a deed, depending on the circumstances (see Q&A: Does a stock transfer form need to be executed as a deed?).

For more information on stock transfer forms generally, see Practice Note: Form of transfer of shares and How to complete a stock transfer form—flowchart.

Where the stock transfer form has taken legal effect

If the proposed amendment is to be made after the stock transfer form has taken legal effect, it must

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