What document is required to transfer unlisted shares?

To transfer unlisted shares, both a share certificate and a stock transfer form are typically required. The share certificate serves as proof of ownership of the shares, indicating that the person holds a specific number of shares in the company. This document is crucial because it legitimizes the ownership and provides the necessary evidence that a transfer is taking place.

The stock transfer form, on the other hand, is a legal document that facilitates the transfer of shares from one party to another. It contains important information, such as the names of the seller and the buyer (the transferor and transferee), the details of the shares being transferred, and requires signatures from both parties. This form is critical as it outlines the terms of the transfer and provides the framework for registering the new owner on the company's books.

Both documents are essential because, alone, a share certificate would not suffice to legally change ownership without the formal record of the transfer, and the stock transfer form would not be valid without the share certificate indicating the seller's right to transfer those shares. Therefore, having both a share certificate and a stock transfer form is necessary for a proper and legally recognized transfer of unlisted shares.