A share transfer is when a shareholder of a company sells or transfers his or her shares to someone else.
There are two main parties involved in the transfer of shares: the transferor and the transferee.
A transferor is a party that transfers shares to the other party, usually an existing shareholder of the company.
The transferee is the new shareholder who acquires the shares.
There are two main ways to transfer shares:
1. Public Transfer: Publicly traded through a securities exchange market, such as the Stock Exchange. The transfer is relatively easy and fast.
2. Private transfer: The two parties directly negotiate the transaction and transfer the shares to the designated object. The transfer process is simple and there is no need to meet the listing requirements.
The transfer of shares must comply with the provisions of the company’s articles of association, such as:
– Board Approval
– The transferor holds sufficient non-preferred shares and meets the minimum trading volume requirement
– Complete transfer documents
– The transfer price should be equal to the fair value
Upon completion of the transfer, the transferor shall hand over the share certificates to the transferee, and the Supervisory Board of the Company will update the register of shareholders and reissue the share certificates.
In general, a share transfer is the act of a shareholder of a company selling or transferring his or her shares to a third party. This is a way for the company’s share capital to change and shareholders to turn.