How to Transfer Shares of a Delaware Corporation

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Delaware is well-known in the business world as a good place for companies to incorporate. It is considered a corporate haven because of its business-friendly laws and tax structures. Once incorporated, stockholders can transfer ownership of their shares to another party. This is a clear and straightforward process.

Surrender your share certificate to the Corporation’s transfer agent.

The Transfer Agent acts as the record keeper for the number of units each shareholder owns.
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Wait for the transfer agent to issue a certificate to a new shareholder, thereby transferring the shares.

 

Waif for the transfer agent to cancel your old certificate.

 

Waif for the transfer agent to enter the details of the transfer on the transfer books of the corporation.

 

Tips

  • If you have any remaining interest in the company after the transfer, the transfer agent will issue you a new certificate reflecting the residual balance.

    Before effecting the transfer, review the company's bylaws to see if there are any restrictions on the transfer of shares.

Warnings

  • Once shares have been transferred to a new shareholder, the old shareholder is no longer recognized by the company and will have no further rights as an owner of the company.

References

Resources

About the Author

Doyl Smith began writing articles about stocks and the financial markets in 2004, with several articles published in the "Jamaica Gleaner." He holds a Master in Business Administration from the State University of New York.

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