selling shares in private ltd co
Completely unrelated to the forum, I know, but just wondered if anyone out there has done this/could give me some advice...
I own some shares in a small privately owned limited company (where I used to work) and am thinking about selling them, but don't really know how to go about it or what my rights are. The MD (my ex-boss) and I didn't exactly part on great terms, and he is being extremely unhelpful! Anyone got any pointers? :confused: |
Re: selling shares in private ltd co
As far as I am aware existing shareholders have to legally be given "first refusal". These are called pre-emption rights and have a statutory basis under the Companies Act 1985 and provision is usually made under the Articles of Association of a company. You would have to check the companies' set of articles as pre-emption rights can be disapplied and the sale of shares can take place directly to a third party.
Selling these type of shares can be quite difficult to a 3rd party as they are not publicly traded on an Index. If they were there would a daily price and could be sold easily through a stockbroker. Not sure if this helps or not. Darren |
Re: selling shares in private ltd co
Originally Posted by aus2be_OH
(Post 6083941)
As far as I am aware existing shareholders have to legally be given "first refusal". These are called pre-emption rights and have a statutory basis under the Companies Act 1985 and provision is usually made under the Articles of Association of a company. You would have to check the companies' set of articles as pre-emption rights can be disapplied and the sale of shares can take place directly to a third party.
Selling these type of shares can be quite difficult to a 3rd party as they are not publicly traded on an Index. If they were there would a daily price and could be sold easily through a stockbroker. Not sure if this helps or not. Darren That makes sense - I have read the articles, but wasn't sure I had understood everything correctly - all that legalise doesn't make for easy reading! Thanks for your reply. |
Re: selling shares in private ltd co
You're welcome. :D
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