Share Transfer
Overview
Share Transfer – Business Overview
What the Share Transfer document is used for
The Share Transfer document is used to formally record the movement of company shares from one shareholder to another. It provides a clear, auditable record of who owned specific shares before the transfer and who owns them afterward.
In Dafater, this document supports accurate ownership tracking, compliance with corporate governance rules, and reliable shareholder records for financial and legal reporting.
Prerequisites and setup before using Share Transfer
Before using Share Transfer, the business should ensure:
- Shareholders are properly set up in the system, with complete and up-to-date details
- Shares or equity structure is defined, including share classes if applicable
- Existing share ownership records are accurate, so transfers are based on correct balances
- Internal approval policies for share transfers are clearly defined (for example, board or management approval)
These preparations help ensure that every Share Transfer reflects the true legal and financial position of the company.
Typical workflow and how it fits into business processes
A typical Share Transfer process follows these steps:
Transfer request initiated
A shareholder requests to sell, gift, or otherwise transfer shares to another party.Review and approval
The transfer is reviewed according to company policies, legal requirements, and shareholder agreements.Recording the Share Transfer
The Share Transfer document is created, capturing:- Transferor (current shareholder)
- Transferee (new shareholder)
- Number and type of shares transferred
- Effective date of transfer
Ownership update
Once confirmed, the system reflects the new ownership distribution.Reporting and compliance
Updated shareholding data is used for registers, financial statements, and regulatory disclosures.
This workflow ensures transparency and control in changes to company ownership.
Key business scenarios where Share Transfer is essential
The Share Transfer document is especially important in scenarios such as:
- Sale of shares between shareholders
- Onboarding new investors or partners
- Exit of existing shareholders
- Family or internal ownership restructuring
- Employee share ownership changes, where applicable
- Mergers, acquisitions, or partial divestments
In all these cases, Share Transfer acts as the official record of ownership change.
Important considerations for users
When working with Share Transfer, users should keep in mind:
- Accuracy is critical – incorrect share quantities or parties can lead to legal and financial issues
- Timing matters – the effective date should match legal agreements and approvals
- Documentation alignment – ensure contracts, resolutions, and approvals match the recorded transfer
- Compliance requirements – some transfers may require regulatory filings or disclosures outside Dafater
- Audit readiness – Share Transfer records should be complete and easy to review during audits
Business value of Share Transfer
By using Share Transfer, organizations maintain clear ownership records, reduce disputes, and support strong governance. It enables confident decision-making by management, shareholders, and auditors, while ensuring that changes in ownership are properly controlled and documented within Dafater.
Basic Information
- Module: Accounts
- Document Type: Other
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| transfer_type | Transfer Type | Select | ✓ | , Issue, Purchase, Transfer | Defines whether shares are issued, purchased, or transferred in Dafater |
| date | Date | Date | ✓ | - | Transaction date when the share transfer is recorded |
| from_shareholder | From Shareholder | Link | Shareholder | Existing shareholder transferring or selling the shares | |
| fromfoliono | From Folio No | Data | - | Folio number of the transferring shareholder | |
| to_shareholder | To Shareholder | Link | Shareholder | Shareholder receiving or purchasing the shares | |
| tofoliono | To Folio No | Data | - | Folio number of the receiving shareholder | |
| equityorliability_account | Equity/Liability Account | Link | ✓ | Account | Equity or liability account impacted by the share transfer |
| asset_account | Asset Account | Link | Account | Asset account used to record share transfer value | |
| share_type | Share Type | Link | ✓ | Share Type | Type or class of shares being transferred |
| from_no | From No | Int | ✓ | - | Starting share certificate or serial number |
| rate | Rate | Currency | ✓ | Company:company:default_currency | Rate per share used for valuation |
| noofshares | No of Shares | Int | ✓ | - | Total number of shares involved in transfer |
| to_no | To No | Int | ✓ | - | Ending share certificate or serial number |
| amount | Amount | Currency | Company:company:default_currency | Total transaction value based on shares and rate | |
| company | Company | Link | ✓ | Company | Company under which the share transfer is executed |
| remarks | Remarks | Long Text | - | Additional notes or comments for the share transfer | |
| amended_from | Amended From | Link | Share Transfer | Original Dafater record from which this transfer was amended |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| System Manager | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Accounts Manager | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Accounts User | ✓ | ✓ | ✓ | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Account | Links to | Accounts |
| Company | Links to | Setup |
| Share Transfer | Links to | Accounts |
| Share Type | Links to | Accounts |
| Shareholder | Links to | Accounts |