Selling Corporate Shares (Stock): Corporate Share Transfer Lawyers in Calgary
Large and small companies often end up dealing with the sale corporate shares. Some argue that the purpose of starting any company is to ultimately sell it or eventually pass the company on to family members. Share transfers can be part of a sale, trade, merger or reorganization. Whatever the purpose of selling corporate shares or a share transfer, you can rely on our dedicated and experienced corporate lawyers at Kahane Law Office in Calgary, Alberta for your share transfer legal needs. We routinely deal with share transfer issues for our corporate clients, and are able to advise on tax issues as well as regulatory issues with the Canadian or provincial government that the share transfers might cause.
When Corporate Share Transfers Happen
The transferring of corporate shares may occur in a variety of situations and for a variant of reasons. Some of these may include:
- The sale of the business / corporation (the sale of shares of the corporation and not simply the assets)
- Corporate reorganization
- When an individual or company buys into an existing business
- When a corporation buys back its shares from existing shareholders
- Rewarding key employees by issuing shares to them
- On the death, bankruptcy or retirement of a shareholder
Things to Consider When Transferring Shares
There is a vast array of Canadian and provincial regulations related to share transfers. These relate to competition law issues, disclosure, liabilities, securities and taxes. Small Canadian Corporations should also have a restriction on share transfers that are established when first incorporated. With very large corporations, transferring a large number of shares to another corporation as part of a merger will almost certainly bring up competition law issues.
Rewarding high-performing corporate officers or employees by issuing or transferring shares to them is often done by corporations as it may be preferred by the individual to an increase in salary, which may have more punishing tax consequences and could also create negative publicity or contradict public policy regarding corporate officer compensation. The issuance or transfer of shares to officers and key employees may also benefit the corporation by providing incentives for the recipients to work towards generating higher profits for the corporation.
For each aspect of selling corporate shares, there are many potential pitfalls for those who are not familiar with this area of law. Our lawyers who deal with selling and buying corporate shares will help you consider this possibility. We will also figure out how the transfer of shares will affect your corporation in the future and how you can structure a sale to maximize the benefits to your corporation.
Drafting Corporate Documents for the Sale or Transfer
Our lawyers practicing in the area of selling and purchasing corporate shares can also assist you and your corporation in drafting corporate resolution allowing the share transfer. Where necessary we can also draft Subscription Agreements, Agreements for the Purchase and Sale of the shares, Bills of Sale, and all other documents which are required to give effect to the share transfer transaction. Due to the potential consequences, it is important to paper share transfers correctly. If you fail to properly paper everything when you are selling or buying corporate shares, you run the risk of assuming liability, losing tax advantages in terms of income and capital gains and Offending securities regulations Alberta.
Finding Corporate Share Transfer Lawyer in Calgary, Alberta
The share transfer lawyers at Kahane Law Office can help with your business corporate legal needs when buying or selling shares. We can be reached toll-free at 1-877-225-8817 (or 403-225-8810 locally in Calgary, Alberta), or email us directly here.