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Share issuance and transfer advice

from £250 +VAT

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How can Rocket Lawyer help issue shares?

Rocket Lawyer has solicitors available to assist you issuing new shares and/or transferring existing shares. Our lawyers will arrange an initial free consultation to answer your questions about the process and give you a fixed price quote.

Rocket Lawyer benefits

If you get legal advice on share issuance from Rocket Lawyer, you will also receive a free Rocket Lawyer Premium Plan membership for three months.

With a Rocket Lawyer Premium Plan, you can make as many legal documents as you need and ask free legal questions as well as sign and share your documents online. 

For more information, read our Pricing page.

Why should new shares be issued?

Private limited companies will generally have at least one share when they are registered. As they grow, it may be necessary to issue new shares to bring in new investment or change the business structure. This may also involve the issuance of different types of shares.

Why may shares need to be transferred?

Existing shares can be transferred to new owners for personal or business reasons. Shareholders may choose to relinquish some of their shares and transfer them to a new business partner, in order to bring them on board. A shareholder may also want to transfer some (or all) of their shares to their spouse or a family member, as a gift. Alternatively, shares can be sold in return for cash or other assets (such as shares in another business).

What’s the difference between issuing and transferring shares?

The main difference is that issuing (or allotting) shares creates new shares which are distributed amongst shareholders - often when a company is set up. By contrast, share transfer involves the transfer of existing shares - always after the company has been formed. Stamp Duty is also normally payable by the purchaser when shares are transferred, but not in respect of shares issued or allotted.

How are shares issued?

Shares can be privately offered to an individual or business. The company directors must:

  • decide how many new shares it wants to issue 

  • check the company articles to find out if they authority to do so; if not, the company shareholders must pass a resolution authorising the directors to issue new shares

  • ensure that the proposed share issue complies with any pre-emption rights or other restrictions contained in their articles of association or shareholders agreement

  • issue share certificates to the share recipient

  • complete and file Form SH01 with Companies House

  • update the register of members 

  • include the new shareholder on their next confirmation statement.

For more information, read Share transfers and issuing new shares.

How are shares transferred?

Shares can be transferred to an individual or business. Before transfer, the shareholder wishing to transfer their shares should check the company’s articles of association and/or shareholders agreement to see if any restrictions are placed on the transfer of shares. Such restrictions may include a restriction on transfers to family members and pre-emption rights of existing shareholders (ie a shareholder’s right of first refusal over the transfer of existing shares).

Directors must:

  • consider and approve the transfer of shares 

  • complete a stock transfer form

  • pay stamp duty where applicable

  • cancel the old share certificates and issue new ones to the new shareholder

  • confirm the share transfer  as part of the annual confirmation statement to Companies House

Read Share transfers and issuing new shares for more information.

Share issuance advice
Share issuance advice
As part of this share issuance service, our lawyers will assist with the share dilution calculations, drafting of board and shareholder resolutions for the issuance of the new shares, the completion and submission or form SH01 and the completion and issuing of share certificates.
from £250 +VAT
Share transfer advice
Share transfer advice
As part of this share transfer service, our lawyers will assist with the drafting of a share purchase agreement board resolution for the approval of the share transfers, the completion of a stock transfer form and the drafting of a deed of adherence and a pre-emption notice (where necessary).
from £250 +VAT

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