Selling Shares of a Company in Gibraltar
Foreign investors can use various types of business vehicles when starting a company in Gibraltar. The first step when opening a company in Gibraltar is choosing the structure to be used to carry out the operations, followed by having the incorporation documents drafted and filed with the Companies House. The incorporation documents, which are made up of the Memorandum and Articles of Association, provide for the rights and obligations of the shareholders and, most importantly, about the company’s capital which is usually divided into shares. The company’s shareholders have the right to issue several types of shares, among which some can be sold, while others cannot.
Our company formation representatives can help foreign investors with the preparation of the incorporation documents of their companies in Gibraltar.
Types of shares and rights attached to them in Gibraltar
The main types of shares issued when a company is registered in Gibraltar bear voting rights and are known as ordinary shares, while minority shareholders may hold non-voting or preference shares. These are also the most common types of shares a company issues. Each type of shares comes with various rights attached to them and the decision of selling them belongs to the shareholders. There are several ways of selling a Gibraltar company’s shares. However, the way in which company shares are sold must be done in accordance with the Companies Act which was recently amended.
We invite you to watch our video on how to sell company shares in Gibraltar:
Ways of selling company shares in Gibraltar
Share sales depend on the structure of the company. The Gibraltar legislation provides for private and public companies to be incorporated. While the shares of private companies can be sold without too many restrictions, the sale of shares in public companies must be done in accordance with the law and by first issuing a prospect which will contain the number of shares to be traded. However, only shares issued for at least 6 months can be sold in the case of public companies in Gibraltar.
Another way of selling shares in a Gibraltar company is through an acquisition deal. Acquisitions fall under the laws related to mergers and acquisitions and the transaction is concluded through a sale-purchase agreement.
For complete information about selling shares in a local company, please contact our company formation agents in Gibraltar.