A shareholder of a company is able to sell their shares to another party. The process that needs to be followed in order to transfer shares will depend on the company’s constitution (or replaceable rules) and the terms of any shareholders agreement that may be in place. This will generally involve offering the shares to existing shareholders before offering them to third parties.
Once the seller has found a buyer using the procedures set out in the company’s governing documents, the buyer will need to consent to becoming a member of the company and being bound by the rules of the constitution. Then, once a formal agreement has been entered into, ASIC will need to be notified of the changes to the shareholder details.
In order to notify ASIC of the share transfer, the company will need to lodge a Form 484 – changes to company details which will contain:
- The name and address of the seller;
- The name and address of the purchaser;
- The class of shares being transferred;
- The amount being paid per share; and
- Whether the shares will be beneficially held.
Patricia Holdings can assist with preparation and lodgement of the Form 484 as well as the relevant minutes/resolutions. Simply place your order for ‘Standard ASIC Company Changes’ as part of our company secretarial service. This form should be lodged within 28 days of the changes taking effect to avoid late fees.
