A matter of form: A transfer form is still required for valid share transfers

Introduction

Transferring shares in an Australian company is an exceedingly common activity in Australian commerce.

Despite this, there is some apparent confusion among company operators, accountants and even the corporate regulator, as to what steps are required to perform a legally effective share transfer.

This article discusses the requirements of a valid share transfer in accordance with the Corporations Act 2001 (Cth) (Corporations Act)¹ and the adverse consequences that may arise from an invalid transfer.

Common misconception

There may be a misconception that a transfer of shares can be made simply by lodging a Form 484 with ASIC to update ASIC's register of members for a company.