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Transfer of shares

Transfer of shares

A transfer of shares means shares change owner, for example through a sale, gift or inheritance.

What is a transfer of shares?

A transfer of shares means that shares in a limited company change owner. It can happen through a sale, gift, inheritance or as part of a restructuring. The buyer becomes a new shareholder.

 

How is a transfer recorded?

In a transfer the new owner must be entered in the share ledger with the correct entry date and share number. If the company has a transfer restriction such as a pre-emption clause, existing owners may have the right to redeem the shares first. With NVR you record the change of ownership easily and get settlement notes and an updated cap table automatically — see how.

Record a change of ownership
Henrik Kristensen, NVR
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Related terms

Share purchase agreement (SPA)

A share purchase agreement (SPA) is the agreement that sets out the terms when shares in a company are sold.

Share ledger

A share ledger is a record of a company's shares and who its shareholders are.

Shareholder

A shareholder is a person or company that owns one or more shares in a limited company.

Pre-emption clause

A pre-emption clause gives existing shareholders the right to buy back shares that have passed to a new owner.