law105.2
Badges: 4
Rep:
?
#1
Report Thread starter 2 months ago
#1
can someone explain share transfers in relation to family? the question states that a share transfer was made to his niece and she then proceeded on to take out a loan with the anticipation of paying off this loan with the proceeds of the shares. TIA
0
reply
Lawschoolhack
Badges: 9
Rep:
?
#2
Report 2 months ago
#2
Very broadly, the shareholder executes a share transfer form and then sends it (with the appropriate fee) to the company for the register of shareholders to be updated. At that point legal title passes to the transferee.

Have a look at Pennington v Waine
1
reply
law105.2
Badges: 4
Rep:
?
#3
Report Thread starter 2 months ago
#3
(Original post by Lawschoolhack)
Very broadly, the shareholder executes a share transfer form and then sends it (with the appropriate fee) to the company for the register of shareholders to be updated. At that point legal title passes to the transferee.

Have a look at Pennington v Waine
Ok I think I underhand that great! So the niece is now has the legal title in these shares and the original person does not anymore? and this would also be considered as a gift correct? the question also states that the original person did not send over the share certificate only the completed forms, I don't know if I am thinking too much into it but this seemed to be an issue to me and it made me think that the process was not complete. If so are there possible remedies that could save this, were the intentions clear like in Pennington?
0
reply
Lawschoolhack
Badges: 9
Rep:
?
#4
Report 2 months ago
#4
(Original post by law105.2)
Ok I think I underhand that great! So the niece is now has the legal title in these shares and the original person does not anymore? and this would also be considered as a gift correct? the question also states that the original person did not send over the share certificate only the completed forms, I don't know if I am thinking too much into it but this seemed to be an issue to me and it made me think that the process was not complete. If so are there possible remedies that could save this, were the intentions clear like in Pennington?
You don't give any information about the transferee's intention so I can't tell if it's clear or not.
The facts of the question will allow you to determine whether it's a gift or not (I don't have the facts).I assume that it is.
Apologies - I should have stated that the share certificate needs to be included (I'm not a company law expert so I would double check that). So, if the transfer wasn't completed then, yes, look at Pennington.
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

If you don't put your camera on in online lessons, why is that?

My teacher doesn't want us to (36)
17.73%
No one else does (66)
32.51%
I'm embarrassed about my background (20)
9.85%
I feel self-conscious showing my face (70)
34.48%
We don't use a video platform (3)
1.48%
I don't have a camera (3)
1.48%
Something else (tell us in the thread) (5)
2.46%

Watched Threads

View All
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise