Share Transfer Agreement


What is a Shares Transfer Agreement?

The Share Transfer agreement is a standard document required for transferring shares in a company from one party to another. The agreement outlines the particulars of the transferor to the transferee. The document should also include the amount of shares to be transferred and the cost or value of each shar etc.

How to use this this agreement?

This agreement should be used by a party who intends to transfer their shares in a company to another party. The party transferring its shares could be a company, a person, or any other organization.

What Kind of Shares Can be Transferred?

Through this kind of agreement, the two major classes of shares can be transferred:

Preference shares

This type of share is given priority over other type of shares. This entitles the holder to a fixed dividend.

Ordinary shares

This ranks lower in priority than preference shares as ordinary share holders do not receive a fixed sum of money.

Applicable law

The Companies and Allied Matters Act, 2020 applies to this document. Also, the general principles of contract apply to the documen.