| 3.
Non Market and Private Transactions |
| Non
market transactions are ones where the stock exchange
is not involved and which do not relate to a sale or disposition
for value. |
| The
transfer form is executed by the transferor. If the shares
are nil or partly paid, the transferee will also sign
the transfer form (s1 STA 63). |
| The
transfer form and the relevant share or debenture certificate(s)
are delivered to the transferee who usually arranges for
the transfer form to be stamped (if necessary). If the
transfer is exempt from stamp duty or is not subject to
ad valorem duty then the relevant section of the transfer
form must be signed and completed by either the transferor,
a solicitor or a person who has knowledge of all the facts.
|
| The
transfer form and the relevant share or debenture certificate(s)
are then lodged with the company for registration. |
| If
the transfer appears to be in order it is then presented
to the board of directors to approve registration of the
transfer, the cancellation of the old share certificate
and the issue of a new share or debenture certificate
in the name of the transferee(s) and, if necessary, a
balance certificate to the transferor. |
| The
appropriate entries are made in the register of transfers,
the register of members and, if necessary, the register
directors' interest. Note that a director must specifically
give notification to the company of a change in his interest
in shares stating the number and class of shares or debentures
involved and the price (s324 CA 85). |
| The
transfer procedure in summary is: |
| (1) |
Complete
or print the stock transfer form |
| (2) |
Transferor
signs the form |
| (3) |
The
transfer form and the relevant certificate(s) are delivered
to the transferee |
| (4) |
The
transfer form is, if necessary, stamped |
| (5) |
The
transferee lodges the transfer form and the relevant certificate(s)
with the company |
| (6) |
The
board of directors approve the transfer |
| (7) |
The
registers are updated, the old certificates are cancelled
and any new certificates issued |
