WHAT ARE BOARD MINUTES APPROVING A SHARE TRANSFER?

These Board minutes are the record of the actions taken by the board of directors once a shareholder has presented the board with a stock transfer form.

WHEN DO YOU NEED BOARD MINUTES APPROVING A SHARE TRANSFER?

The Board Minutes are needed to ensure that the board of directors approved the transfer of a shareholder’s shares. Shares cannot legally be transferred without the approval of the company’s board of directors. The update of the company statutory books (which are called the Registry of Shareholders) is also predicted by the board of directors meeting minutes. The statutory register will not be updated unless there is a record indicating the board of director’s approval.

WHAT IS INCLUDED IN BOARD MINUTES APPROVING A SHARE TRANSFER?

The board minutes include the following:

• A statement that the shareholder has completed and submitted to the Board of directors a stock transfer form with or without an impressed stamp duty if applicable. If the value of the share is over a preset amount, then a stamp duty must be paid.

• The minutes also contain information to the effect that the statutory registers have been updated and that a share certificate has been authorized for issue.

• The minutes should reflect that the Board has received the original share certificate. If the original certificate cannot be produced, then the minutes should reflect that the shareholder has submitted an indemnity form which will allow the board to issue a duplicate share certificate.