Share transfer

Updated: Aug 20, 2021

When a company share is sold or otherwise disposed of to another person it is necessary to transfer formally the right of ownership. This is effected by the completion of a transfer form which is then sent, together with the share certificate, to the registered office of the company. Such business is normally conducted by a bank or a broker. On receiving the transfer form, signed by the seller, the company will enter the buyer’s name in its share register and delete that of the seller. It will then issue a new certificate to the buyer. If the seller is disposing of part only of the holding then the company will make out two new certificates but, to speed up the transfer process, will initially return the old certificate to the seller marked with a certification of transfer. Companies tend to charge transfer fees payable by the buyer. The latter is liable also for any stamp duty payable on the transfer. brokerage fees are also normally payable by both buyer and seller where a broker has been employed.

Reference: The Penguin Business Dictionary, 3rd edt.

Sources & references
Risk disclaimer
James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.