Shadrack Ruto owns 500 shares of Sh. 20 each in Alpha and Omega Ltd. and 500 shares of Sh. 10 each in the Beginning and End Ltd. Both companies are regulated Table A – articles of association. Shadrack Ruto has agreed to sell all his shares in Alpha and Omega to Albelnego Soi and 300 shares in Beginning and End to Meshack Mamba. He has been informed that both companies use the form of transfer that is generally used brokers, who are members of national stock exchange.
Advise Shadrack Ruto on:
(i) The information which is required on the share transfer form.
(ii) The procedure which should be followed to effect the transfer, and the duration it will take to issue the new share certificates.
Number of shares in question.
• Name of the company
• Name, postal address and occupation of the transferred.
• Transferor and transferee execute the instrument of transfer.
• The executed instrument of transfer is presented for stamping.
• The stamped instrument of transfer is delivered to the company for registration.
• The transfer is registered and a share certificate issued in favour of the transferee.
• Unless the registration of a transfer is refused the company, it must be registered at the earliest possible opportunity and a share certificate must be ready for delivery within 60 days of presentation of the transfer for registration. This entails cancellation of the transferors share certificate and entry of the transferees name on the register of members and issue of a new share certificate in the transferee name.
My advise to the directors of Tangaza Company is as follows: