Instructions on procedures for transferring shares in the company

Article overview

Procedures for transferring shares is a process that helps shareholders transfer ownership of shares to others, creating flexible conditions in adjusting ownership structure and raising capital. This process not only ensures legal rights for all parties but also helps the company maintain stability and enhance its ability to develop and expand its scale. The article below will provide specific information about the process of transferring shares in a joint stock company.

Procedures for transferring shares in the company
Procedures for transferring shares in the company

Conditions for transferring shares

First, transfer common shares

Pursuant to Clause 3, Article 120 of the Law on Enterprise 2020, conditions for transferring common shares include:

  • Within 03 years from the date the company is granted the Business Registration Certificate, common shares of founding shareholders can be freely transferred to other founding shareholders and can only be transferred to people who are not founding shareholders if approved by the General Meeting of Shareholders;
  • Or the company charter stipulates conditions for transferring shares.

Second, transfer of voting shares

Pursuant to Clause 3, Article 116 of the Law on Enterprises 2020, it is stipulated that voting preference shares cannot be transferred to others, except in cases of transfer under a legally effective Court judgment or decision or inheritance.

Thus, shares are freely transferable but will be limited in one of the two cases above.

What are the conditions for transferring shares?
What are the conditions for transferring shares?

Procedures for transferring shares in joint stock companies

According to the provisions of the Law on Enterprises 2020, procedures for transferring shares of joint stock companies are carried out as follows:

Step 1: Prepare documents

Share transfer documents include the following documents:

  • Decision of the General Meeting of Shareholders on the transfer of shares;
  • Minutes of the meeting of the General Meeting of Shareholders on share transfer;
  • List of founding shareholders;
  • Share transfer contract;
  • Minutes of liquidation of share transfer contract;
  • Share certificate;
  • Register of shareholders.

Step 2: The General Meeting of Shareholders holds a meeting to make a decision on the transfer of shares.

Step 3: The parties sign and implement the share transfer contract.

Step 4: The parties proceed to pay the share transfer contract.

Step 5: The company makes changes to shareholder information in its shareholder register.

Steps to transfer shares in a joint stock company
Steps to transfer shares in a joint stock company

Form of transfer and time to become a shareholder after receiving the transfer

The transfer of shares is done through contracts or transactions on the stock market. After transferring shares, the individual or organization receiving the transfer will become a shareholder of the company from the moment their information is fully recorded in the shareholder register.

Legal basis: Clause 2 and Clause 6, Article 127 of the Law on Enterprises 2020.

Consulting services and guidance on transferring shares in joint stock companies

At Long Phan, we provide consulting services and guidance on transferring shares in professional joint stock companies, helping you carry out procedures quickly, accurately and legally. Below are some outstanding services we provide:

  • Consulting on conditions for transferring shareholders’ shares;
  • Consulting, supporting negotiations, negotiating and signing share transfer contracts;
  • Provide a standard share transfer contract form;
  • Consulting on limiting risks when implementing transfer contracts and remedial measures;
  • Review, amend, supplement and complete the share transfer contract;
  • Consulting and supporting the preparation of shares transfer;
  • Instructions on the process of transferring shares;
  • Consulting and supporting notification of shareholder changes to state agencies;
  • Consulting on taxes and financial obligations;
  • Consulting and guidance on changing shareholder information in the shareholder register;
  • Consulting on the rights and obligations of the parties participating in the transfer;
  • Consulting on other issues related to share transfer.

Understanding the procedures and regulations and ensuring proper implementation of the steps for transferring shares in a joint stock company will help you avoid unnecessary risks, while creating opportunities for sustainable business expansion and development. With a team of experienced experts in the field of business consulting, Long Phan is committed to providing you with a quick and transparent share transfer service. Please contact us immediately via the hotline: 0906735386 for detailed advice and timely support in all procedures for transferring your shares.