For private New Zealand companies a signed share transfer form is required to transfer shares between a Seller (Transferor) and a Buyer (Transferee).
New Zealand shareholders need to be aware that the constitutions of many limited liability companies contain pre-emptive rights which require that a transferor offers shares for transfer to other existing shareholders before those shares can be offered to third parties or new shareholders.
If the shares are being sold to a new shareholder, to bind the new investors to the existing shareholders agreement, a deed of accession should be signed. Once they have signed this, the new shareholder is required to comply with the shareholders agreement’s provisions.
Orchestra provides private companies who are customers with an example share transfer form which they can use as a template to facilitate share transfers between their investors. Using the new e-signature tool in Orchestra, companies can complete the transfer easier and faster by uploading their share transfer form into Orchestra’s document signing tool, setting up the document details and then sharing with the Buyers, Sellers and witnesses for e-signatures.
Sign up for a free guided demo of Orchestra here.
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DISCLAIMER: This article and form are for informational purposes only, and contain general information only. Orchestra is not, by means of this information, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This information is not intended as a recommendation, offer or solicitation for the purchase or sale of any options or shares.