Shares of private limited companies are a personal property and may be transferred in the manner laid down in the company’s articles of association. In the case of a private company the right to transfer shares in restricted usually in the form of pre-emption clauses or by conferring on the directors the power to refuse to register transfers (in some circumstances).
It shall not be lawful for the company to register a transfer of shares or debentures of the company unless a proper instrument of transfer (signed by the transferor and the transferee) has been delivered to the company in accordance with Section 73 of the Companies Laws of Cyprus, Cap. 113, as amended (“Law”).
There is no requirement under Cypriot law for an instrument of transfer to be witnessed although, for evidential purposes, it is wise in the event that such transfer is disputed at a later stage. A resolution of the Board of Directors will be required to approve the instrument of transfer.
Any transfer of shares of a private company with a share capital shall be notified to the Registrar of Companies in the form determined by the Registrar, within 14 days from the registration of this transfer in its register of members in accordance with Section 113A of the Law.