Can you transfer part of a share in a limited company?

0

Hey - I own a single share in a small private limited company in England. I would like to transfer half of that share to my wife, so that we have equal share over it as an asset. I have no clue how this would work, though. Is it possible to transfer part of a share? Thanks

Answers

0

This can be a complex issue because of the administrative burden on a company. It also depends on whether the company’s articles of association permits joint shareholdings and whether the director or other shareholders authorise it.

You cannot split a single issued share in half, but you can make someone else a joint shareholder of a share that you already own. The company director will have to complete a stock transfer form to transfer ownership from a single existing shareholder to the joint shareholders. Only one share certificate will be issued for a joint share but it will state the names of all joint shareholders.

As a matter of practicality, the joint shareholder who is named first on the register of members will be deemed ‘senior’, which means he or she will:

  • Have the right to vote at general meetings and sign written resolutions
  • Be the company’s point of contact in respect of the joint share.
  • Be the distribution recipient of any dividends paid on the joint share.

However, a joint share cannot be transferred (sold) without the signatures of all joint shareholders. Furthermore, the order of names on the register of members can be changed at any time, as long as all joint shareholders are in agreement.

a year ago
 

Your answer