Directors' Resolution Approving Transfer of Shares (Circulating Resolution)
This Directors' Resolution allows the board to approve a single transfer, or multiple transfers, of shares.
(0 reviews)
Last updated November 12, 2024
Under 5 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
A Directors' Resolution Approving Transfer of Shares is a formal document that outlines the decision of a company's board of directors to approve the transfer of shares from one shareholder to another. This resolution ensures that the transfer of shares is legally valid and that all parties involved are aware of the change in ownership.
The Legal Risk Score of a Directors' Resolution Approving Transfer of Shares (Circulating Resolution) Template
Our legal team have marked this document as medium risk considering:
- The fact that companies may need to tailor it to suit their internal procedures and constitution.
- The regulatory requirements that must be carried out after executing this document to ensure it is effective and avoid ASIC penalties.
Directors' Resolution Approving Transfer of Shares (Circulating Resolution) Checklist
Complete your free Directors' Resolution Approving Transfer of Shares (Circulating Resolution) with our checklist
Get every director to sign this resolution
As a circulating resolution, it will only be valid with the signature of every director of the company.
Effect the share transfer
- Ensure that you understand any share transfer provisions in the replaceable rules, company constitution or shareholders agreement.
- Fill out the Share Transfer Form, providing all the information required in the questionnaire. This will ensure that you comply with sections 1071B of the Corporations Act 2001, which requires there to be an instrument of transfer, and section 1072H, which requires the instrument of transfer to contain a statement regarding the beneficial status of the shares.
- Execute a new Share Certificate, and provide it to the transferee.
- Update the Transfer Journal (optional)
- Update the Register of Members (required).
- Lodge an electronic Form 484 with ASIC, within 28 days of executing the directors' resolution approving transfer of shares.
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