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The right to transfer shares is a privilege of shareholders in companies, especially for founding shareholders. However, the transfer of shares by founding shareholders must comply with specific provisions of the law. So, are founding shareholders allowed to transfer shares or not? Let’s find out the details with Long Phan in the following article.
Pursuant to Clause 4, Article 4 of the Law on Enterprises 2020, founding shareholders are shareholders who own at least one common share and sign in the list of founding shareholders of a joint stock company.
In addition, according to the provisions of Article 120 of the Law on Enterprises 2020, to become a founding shareholder, you must meet the following conditions:
First, for ordinary shares transfer:
According to Point d, Clause 1, Article 111 of the Law on Enterprises 2020, founding shareholders transferring common shares meet the following conditions:
Second, transfer of preferential voting shares:
Pursuant to Clause 3, Article 116 of the Law on Enterprises 2020, voting preference shares cannot be transferred, except in cases of transfer according to legally effective decisions, judgments or inheritance.
Thus, founding shareholders are allowed to transfer shares. However, for common shares within a period of 03 years and voting preference shares, there are certain transfer restrictions.
According to the provisions of the Law on Enterprises 2020 and Article 58 of Decree 01/2021/ND-CP, the transfer of shares of founding shareholders is carried out internally within the company, except for the transfer of shares by foreign investors. in an unlisted joint stock company
Accordingly, procedures for notification of changes in shareholders in the company must be carried out. Specifically as follows:
Pursuant to the Law on Enterprises 2020 and Decree 01/2021/ND-CP, the shareholder change notification dossier includes the following main documents:
According to the provisions of the Law on Enterprises 2020, the process of notification of change of shareholders goes through the following steps:
Step 1: Organize a General Meeting of Shareholders to decide on the transfer of shares.
Step 2: Related parties will sign a share transfer contract.
Step 3: After signing the contract, proceed to pay the transfer price.
Step 4: Update shareholder information in the company’s Shareholder Register by editing and adding necessary information.
With an experienced team, Long Phan will advise in detail the steps, guide you to prepare complete documents, and follow the correct process in share transfer transactions. Consulting and support services at Long Phan include:
Transfer of shares is an important process that shareholders need to understand to ensure their rights in the company. If you need advice or support in carrying out this procedure, please contact Long Phan via the hotline 0906735386. We are always ready to support you quickly and conveniently, while ensuring maximum benefits during the share transfer process.
Note: The content of the articles published on the website of Long Phan Investment Consulting Company is for reference only regarding the application of legal policies. Depending on the time, subject, and amendments, supplements, and replacements of legal policies and legal documents, the consulting content may no longer be appropriate for the situation you are facing or need legal advice on. In case you need specific and in-depth advice according to each case or incident, please contact us through the methods below. With our enthusiasm and dedication, we believe that Long Phan will be a reliable solution provider for our clients.
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