Share Transfer - Ltd Company

[anniesdad]

I am (along with my Wife) Co. Director of a non-trading company, looking to bring a friend in with a view to an equal partnership and to commence trading. My Wife will resign as co-director (form 288b) and my friend will become co-director (form 288a). At the moment my Wife and I have 1 share each with a nominal value of £1.00 per share.

I need to transfer my Wife's share to my friend. Having never issued/transferred a share before how do I go about this?

[kanes]

You can do this online actually through companies house web filing system (www.companieshouse.gov.uk)

It's fairly straight forward to do, I'd advise this order:

Add new director
Transfer share
Resign previous director

[v12v8]

You need a stock transfer form.

Here is where you can get one:
www.clickdocs.co.uk/stock-transfer-form.htm

And here is advice on how to fill it out:
www.capitaregistrars.com/CompletingStockTransferForm.html

I don't condone this advice by the way. And I would strongly recommend getting advice from an accountant (for any tax issues) and a lawyer (i.e. if you and your friend own the company 50:50, and both are directors, how are you going to deal with a stalemate situation if you can't agree? Believe me, these things happen...)

[deeen]

Hi anniesdad, just to add (as you may know) being shareholder and director are seperate issues, it is possible to be shareholder but not director and vice-versa

[anniesdad]

Ahhhh...the power of Pistonheads.

I am aware shareholders/directors do not have to be one and the same, but thanks anyway. Personally I wouldn't have thought the order in which you undertake appointments/resignations/share transfer would have made any difference.
Top men/women all of you.

Cheers

[anniesdad]

v12v8 said:

I don't condone this advice by the way. And I would strongly recommend getting advice from an accountant (for any tax issues) and a lawyer (i.e. if you and your friend own the company 50:50, and both are directors, how are you going to deal with a stalemate situation if you can't agree? Believe me, these things happen...)

Know what you're saying, and trust me i'm well aware of the potential problems in being equal partners, thanks for the advice. What advice don't you condone by the way?