Transfer shares between members

A transfer is lawful only when the steps the articles and the law require have been taken: pre-emption where the articles give it, the board's approval, stamp duty, and the executed stock transfer form. IQ Entities keeps those steps on the transfer itself, so when a buyer's solicitor asks later how the shares moved, the answer is in one place.

Raise the transfer

1. Open the company and choose Transfers & Certificates under Securities in its sidebar, then choose New transfer.

   

2. Choose the Kind: Transfer for a sale or gift, or Transmission on death when shares pass to a deceased member's personal representatives.

3. Choose the Share class, the Transferor (the list shows each holder's current balance) and the Transferee. Enter the number of Shares, the Transfer date and, for a sale, the Price per share. Choose Raise transfer.

   

Take it through its steps

The transfer opens on its checklist, and shows only the step that comes next.

1. If the class carries a right of first refusal, choose Record pre-emption offered / waived once the other members have been offered the shares or have waived the right.

2. Choose Record board approval once the directors have approved the transfer.

   

3. Enter the Stamp duty paid, or 0 if none was due, and choose Record.

   

4. Under the checklist, draw up or upload the Stock transfer form (J30), the Board resolution approving the transfer and the Stamp duty evidence.

5. Choose Register on the share register. The shares move, and certificates are reissued for the new balances.

   

Check the certificates

1. Choose the Certificates tab.

   

2. Each certificate the registration issued is listed with its number, holder and shares. Use Add document on a row to draw up the certificate or attach the signed copy.

   

Tips from practice

• An unrecorded stamp duty does not stop registration: IQ Entities does not calculate the liability, so it reminds you rather than refusing a transfer that may owe nothing. Record the figure, or nil, before you register so the file is complete.
• A drawn-up stock transfer form is a draft. The checklist line is ticked only when the signed form is uploaded.
• The Transferee list offers the holders already on this company's cap table.
• Check the register of members after registering. See Produce the register of members.