A stock transfer agreement is a formal document which lays down the terms and conditions by which shareholders can transfer, sell, gift or assign their stocks to others keeping with the rules of the shareholder agreement of the company. Most companies which have multiple shareholders have a shareholder’s agreement that mentions terms about stock transfer. A stock transfer agreement helps to make the transfer of shares formal and legally binding.
When creating a stock transfer agreement, mention the names of the shareholders involved and how many shares they own in the company along with the value of the shares. Give the date of creating the document and mention the number of shares transferred by one party to the other. Any additional or special instructions must also be mentioned clearly. Once the agreement has been signed, ownership of the shares is transferred to the new owner legally and the name of the new owner must be updated in the company’s records.
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Sample Stock Transfer Agreement
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