Buying shares from an outside shareholder
Discussion
I have agreed a price to buy some shares in a business (that I own 70% of) from an outside shareholder. He is no longer connected with the business, having left 6 years ago.
How straightforward is the share transfer please? Can I download the forms from somewhere? How does the deal work (ie at what stage do I send the bank transfer for the agreed consideration)? Anything else to consider?
I would like to make the sale as easy as possible for the shareholder so I anticipate providing the paperwork.
Many thanks
Bert
How straightforward is the share transfer please? Can I download the forms from somewhere? How does the deal work (ie at what stage do I send the bank transfer for the agreed consideration)? Anything else to consider?
I would like to make the sale as easy as possible for the shareholder so I anticipate providing the paperwork.
Many thanks
Bert
In terms of process believe you'd need a Stock Transfer Form;
https://www.gov.uk/guidance/stamp-duty-on-shares
Timing of exchanging the money I assume you'd want to tie in with when the transfer settles on the register of members, but not something I know too much about.
https://www.gov.uk/guidance/stamp-duty-on-shares
Timing of exchanging the money I assume you'd want to tie in with when the transfer settles on the register of members, but not something I know too much about.
What you should do is use a corporate lawyer- as its just too easy to make a mistake and for it all to go wrong!
What sort of value are you talking? 10k, 100k? 1m? 10m?
who is buying the share- you personally or the business by doing a share buy back? the latter can be more tax advantageous if the cash is sitting in the ltd co, but it needs revenue clearance.
What sort of value are you talking? 10k, 100k? 1m? 10m?
who is buying the share- you personally or the business by doing a share buy back? the latter can be more tax advantageous if the cash is sitting in the ltd co, but it needs revenue clearance.
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