There are a number of documents you’ll need to sign your way through in order to sell shares in your company. But with our easy step-by-step guide, it doesn’t have to be difficult.
What are the steps?
Step 1. Consult your Shareholder’s Agreement (if you have one) and Articles of Association.
These documents will set out the process for your specific company and if there are any first refusal clauses you need to prepare for when you sell shares in your company.
Step 2. Give Notice of a Special Meeting of the Directors
This notice is given to the board of directors of a company to inform them of a special meeting. Which, in this case, is to sell your shares in the business.
Step 3. Issue Notice of Extraordinary General Meeting of Shareholders
This is a formal notice to convene the shareholders of the company.
Step 4. Draft Share Sale Agreement
This is the legal contract used for either the sale and purchase of shares in a company.
Step 5. Prepare Instrument of Transfer
This document is also necessary for transferring the legal title of the shares.
Step 6. Create Contract Notes
Additionally, you will need contract notes comprising of a bought note and a sold note in order to transfer the beneficial title of shares.
Step 7. Create Share Certificate
This document evidences the buyer’s title for holding the respective company shares.
