Basics of How to Transfer Shares in a Malaysian Company and Do It Your Way
“Nothing is permanent,” not even shares ownership. They switch hands, and they change. There can be many reasons as to why you might want to transfer your shares, ranging from giving them to your family to selling them to another party. Like many official things, there are certain procedures to follow and papers to fill before that can happen. These steps must be followed to ensure a proper transfer for a private limited (SDN BHD) company. Know the basics of how to transfer shares in a Malaysian company and transfer it your way!
Transfer Shares, the Essential Steps
The following are everything you will need to start:
1. Inform the Relevant Parties of Your Decision
You must inform the company, and in extension, the board of directors before you take it any further. You will also need the help of some company personnel to complete this process. Other than that, you may wish to inform others outside the company who will be implicated by your decision to transfer shares, such as the new shareholder.
2. Liaise With the Company Secretary
The company secretary will play a significant role in this process. Upon you informing the company of your decision, the company secretary will then start to obtain the necessary approvals from the board of directors and provide you with Form 32A (following Section 103 of the Companies Act 1965), which is the document that would require both the new shareholder’s signatory and your own.
3. Return the Original Share Certificate
When you first buy shares, companies usually issue a certificate as proof of ownership. Should you desire to relinquish the ownership, the certificate will have to be returned to the company. Simply have it submitted to the company secretary, and that would suffice.
4. Form 32A, Stamping and Paying for Stamp Duty
Once Form 32A has been completed, it will need to be submitted to the Inland Revenue Board (IRB) for validation purposes. You will then have to pay for the stamp duty as part of the procedure.
5. Issuance of New Share Certificate
The company secretary will update the company register book and issue a new share certificate for the new shareholder.
Other Details You Should Know
Despite the process of share transfer being mostly streamlined, there are several other considerations that you would benefit from learning to know what to expect.
1. Potential Restrictions
The board of directors and other relevant members can choose to decline the transfer of shares should there be grounds for such a decision. This is part of their rights. Refer to your local legal bodies to understand more.
2. An Alternative
Not wanting to have to go through all that hassle? You or your company can enlist corporate services providers’ help to help you skip through all the formalities and guarantee that it would be done properly. This is especially useful given these providers are well-versed in corporate affairs’ intricacies and legal requirements.
How We Can Help
3E Accounting Malaysia has years of experience and expertise in all matters corporate and legal related. We understand that letting go of your transfers is a big decision. Let our team of professionals guide you step-by-step in the process of transferring shares to another hand safely and correctly. For more information on 3E Accounting’s Malaysia Incorporation Package, consult us today!