Share owners can transfer or sell their shares and the rights that go with them. This is also called "rights attached to the shares".

Published by Zoom Startups on November 10th, 2021.

Transfer of shares must conform to any conditions or restrictions that apply to a corporation's shares and their transfer; directors could have to approve all transfers of shares. Individuals can purchase shares not previously issued by the corporation. This is known as "buying shares from the treasury". Persons can also buy shares from an existing shareholder and have the corporation register the transfer. This must be done according to the terms set out in the articles of incorporation. If you are considering buying the shares of a private company, it is a good idea to get expert advice.


One of the benefits of transferring shares in a private corporation is that the ownership of the corporation can be easily transferred by the purchase and sale of shares. If shareholders of a privately held corporation do not want to own a part of the corporation any longer, their shares can be sold to an individual or an entity such as a corporation or a partnership. Our business expert can assist with the transfer of your shares if you are ready to sell.

In privately owned corporations, when transferring shares, shareholders must adhere to the restrictions and conditions that are set out in the corporation’s Articles of Incorporation and which may also contain restrictions relating to share transfers. Restrictions can apply to all transfers or sometime to specific cases, such as transfers between spouses or other family members. Shares can usually be transferred to both individuals and entities, including partnerships and corporations. It is prudent to contact a professional to help you conclude what restrictions may apply to your situation regarding the transfer of shares.


Common share transfer restrictions include who can buy or sell shares or how many shares can be transferred. One of the requirements is existing shareholders must agree to the transfer and a requirement that a shareholders’ resolution favouring the transfer be approved. Share transfer requirements and restrictions in privately held corporations can be established for several reasons, but the most common is that the shareholders are usually also the directors, officers and employees of the company. In such instances shareholders would be vociferous about having a say about whom they would prefer to do business with.

As a shareholder whether you are buying or selling you must take into consideration the impact this transaction may have with regard to your taxes. The concerns involved in the transferring of shares can be quite intricate. For advice and assistance with trade issues, contact our experts at Zoom Startups today!






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