The transferring of a ready made or off-the-shelf company to new owners can be a relatively simple process.
Resigning the Directors and Secretary
The existing directors and secretary of the ready made company (who might be nominees) will be resigned. The new directors and secretary will at the same time be appointed.
These changes can be effected by either paper Form AP01 (previously Form 288a) and Form TM01 (formerly 288b) or electronically. The later is generally quicker. If the purchasers require additional directors, then these appointments can be made at the same time.
Transferring Shares in an Off-the-shelf Company
Transferring shares in an off-the-shelf company may not be as straightforward as the changing of the company officers as detailed above.
At the time a ready made company is formed, the person setting it up in all probably, had no knowledge of who the eventual purchasers would be or their authorised or issued share capital requirements were. They may have opted for a authorised share capital of 100 shares of £1 each, whilst the purchasers have a requirement for 1000 shares of 10 pence each.
In addition, it is likely that the issued share capital comprises of only one share, whereas the purchasers may consist of five persons each wanting equal shares.
In either situation, the deficiency can be addressed by company resolutions, an increase in the authorised share capital and the issuing of additional shares. These processes however will take longer than if the share structure had already been in the required distribution from the beginning.
