Selling Company Shares
Selling shares in a company that is registered with Companies House is a legal process requiring the support of a business law specialist.
Typically, privately-owned companies are limited in structure. These include private limited by shares (LTD), private limited by guarantee (LTD), limited liability partnership (LLP), and public limited company (PLC).
Limited companies are able to sell or transfer company shares. This can even be in the form of a gift. Shares can be sold, transferred, or given to other individuals. A company share represents a proportion of the company which is owned by the seller. Having ownership of a share enables you to receive a relative proportion of the company’s overall profits.
Reasons for selling company shares
You may wish to sell your company shares to improve your own cash flow or for other personal reasons such as retirement. Selling company shares could also be used as a way of rewarding employees, for example instead of a pay increase or to ensure employee loyalty if the employee is integral to your company.
In addition, you may wish to sell shares in your company to sell your company through a share purchase. Selling a company through a share purchase involves transferring all, or a significant percentage of the company shares. In this scenario, the buyer becomes the majority shareholder or owner.
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