Share — a unit of ownership in the company. Shares give a right to company’s profit: if any is declared, a company secretary distributes it proportionally to shareholders in the form of dividends. There can be two types: common shares or preferred shares, with the former being equal and the latter providing a priority to its owners.
How can I transfer shares?
If you plan to transfer shares, you need to prepare proper paperwork.
- The Directors’ Resolutions in Writing. This is a document necessary to sell, buy, and accept shares. It also authorizes using the company stamp and paying duty to IRAS.
- Instrument of Transfer, a document confirming the agreement to transfer shares on both sides
- Working Sheet based on the company’s latest accounts to be presented to IRAS
- Share Certificate (ownership document): the old one returns to the company for cancellation and a new one is being issued.
How do I organize Share Allotment?
Share Allotment, or simply issuing shares needs to be approved by the shareholders during AGM or an Extraordinary General Meeting. The procedure is as follows:
- The Company Secretary prepares the paperwork concerning the Extraordinary General Meeting (if applicable)
- Prepares and signs Directors’ Resolutions in Writing regarding the issuance and allotment of shares
- Updates ACRA
- Prepares new Share Certificate(s)
- Updates company’s register of allotments and register of shareholders.
What you need to know about Shares in Singapore
ACRA and IRAS oversee the transfer of shares. Your Corporate Secretary must update the registers of the company and report the changes to ACRA. There is also a stamp duty you need to pay to IRAS. The size of the fee depends on the Working Sheet.