Stock Transfer Form

The shareholders of an unlimited company do not benefit from the protection afforded by limited liability. As such, if the unlimited company is unable to pay its debts, the shareholders may be held personally liable for the debts of the company. Therefore, in addition to the rights and benefits attaching to the shares in an unlimited company, the shares also carry with them the potential of unlimited liability.

As a matter of law, it is generally only possible to transfer an obligation (such as that of unlimited liability) or a debt by means of a deed entered into between the transferor and the transferee. As such, to transfer the shares in an unlimited company, the existing shareholder and the proposed new shareholder must enter into a formal deed of transfer. The deed will need to be executed by each of the parties to it as a deed in the presence of a witness.

Note: A stock transfer form cannot be used to transfer shares in an unlimited company.

The attached deed expressly provides for the transfer of shares in an unlimited company. You will be able to include all relevant information in relation to:

– the transferor;

– the transferee;

– the shares being transferred;

– the price; and

– other relevant details.

This stock transfer (deed of transfer) form has been drafted by solicitors and is easy to complete. It comes complete with easy to understand guidance notes and instructions on completing the transfer form.

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