selling shares in private ltd co
Mar 19th 2008, 10:21 am
#1
Forum Regular
Thread Starter
Joined: Dec 2004
Location: Cardiff > Sydney > Brisbane
Posts: 145
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?
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?
Mar 19th 2008, 11:42 am
#2
In Perth & Loving it...
Joined: Feb 2008
Location: Perth, Western Australia
Posts: 539
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
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
Mar 19th 2008, 11:47 am
#3
Forum Regular
Thread Starter
Joined: Dec 2004
Location: Cardiff > Sydney > Brisbane
Posts: 145
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
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.
Mar 19th 2008, 11:49 am
#4
In Perth & Loving it...
Joined: Feb 2008
Location: Perth, Western Australia
Posts: 539
Re: selling shares in private ltd co
You're welcome. 
