Transfer of shares

[Waverosi]

I recently signed a contract with my business partner stating that he would transfer the entirety of his shareholding to me. I have a few questions about the process however. We are just computer programmers, so it’s not our expertise how to go about this. We a UK Limited Company with 100 ordinary shares valued at £1 each, 50 held by myself and 50 by my partner, which now need to be transferred to me.

• What forms do we need to fill in to enact the transfer of shares?
• Is it a legal requirement that a Limited company consist of more than one individual? (as will be the case once the transfer is enacted)
• Do I need to register someone else as a secretary or in some other position within the company?
• Is it legally necessary that money is exchanged to purchase the shares at the point of transfer? Or can it be transferred without money exchanging hands on the spot?

I hope that these questions are not a problem and are quick and easy to answer. Any help is greatly appreciated.

 

[Scalloway]

1. This is a sample form that you should complete

http://www.shareview.co.uk/4/Info/Portfolio/Default/en/Home/Shareholders/Documents/STF_Combined.pdf

2. No a company can have only one shareholder
3. There is now no legal requirement for a company secretary unless the company articles specify it.
4. You should have a legal contract that specifies when money changes hands.

 

[1st Formations]

Scalloway has effectively answered your questions above. There is no one official transfer form but there are plenty of templates like the one above online, and one shareholder and no secretary is okay.

The process of transferring shares is quite straight forward. If you would like some more information on the process have a look at this blog.

 

[Waverosi]

Thank you for your answers.

2. No a company can have only one shareholder

In my admittedly brief research, I didn't see anything that said it is forbidden to have one shareholder. Gov uk (can't link yet) says there must be "at least one shareholder", but does not say that one is not enough. Other sources (from googling) all say "one or more shareholders" or similar.

Could you provide a citation for reference? Thanks.

 

[1st Formations]

A company must have at least 1 shareholder. There is no legal requirement for any more than that.

I'm sure that's what was mean by the answer above anyway, but the phrasing in response to your question has made it seem somewhat confusing. One is definitely enough though!

 

[Waverosi]

I also just realised I misread the quote, I didn't see the "a" (I read "no company" instead of "no a company").

Thanks for clearing that up.