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Articles of Association (?Articles?) govern the internal affairs of a company, and act as a contract between each of the company's shareholders, and between the shareholders and the company itself.
The basic rights are to share proportionately in profits, in management (the right to vote for directors), in corporate assets upon liquidation, and in any new issues of stock of the same class.
Transfer of shares The company's articles of association (the company's set of rules) usually allow a shareholder ('the transferor') to transfer shares to someone else ('the transferee'). The transfer may be a sale or a gift of the shares. Sometimes the articles contain restrictions on transferring shares.
A Share Transfer is the process of transferring existing shares from one person to another, either by sale or gift, rather than issuing new shares. Typically, shares are transferred to bring a new key business partner on board.
You will be required to submit the following information when completing the stock transfer form: Consideration money (How much is paid for the shares) Name of Security (e.g. 100 Ordinary Shares for YOUR COMPANY LIMITED) Description of Security. Number of shares to be transferred. Name and address of the transferor.
What is a waiver of preemptive rights? A letter for waiver of shareholders' preemptive rights is a binding statement by the shareholders that they wish to forfeit their right of preemption, effectively stating that they do not intend to take part in the purchase of additional shares.
Articles of association form a document that specifies the regulations for a company's operations and defines the company's purpose. The document lays out how tasks are to be accomplished within the organization, including the process for appointing directors and the handling of financial records.