Shareholders can transfer shares to other shareholders. Existing shareholders can transact with an existing shareholder or with a new shareholder, subject to the provisions of the company’s constitution. Any transfer of shares will need to be in compliance with the constitution. Only fully paid shares can be transferred.
In such transactions, the company does not get paid and the transfer of shares is not initiated by the company. Nonetheless, the company must notify ACRA if there is a transfer of shares in the company by filing the “Transfer of Shares/Update List of Members” transaction via BizFile+.
The transfer does not take effect until ACRA updates the company’s Electronic Register of Members (EROM) to reflect the shares transaction. As shareholders are usually also members of the company, the EROM must be updated whenever there are changes in the shareholdings.