Document background
The Notice of Transfer of Shares is a crucial document in Philippine corporate practice, required whenever ownership of corporate shares changes hands. This document must comply with the Revised Corporation Code of the Philippines and related regulations, including tax and securities laws where applicable. The notice serves multiple purposes: it formally informs the corporation of the share transfer, provides necessary details for updating the stock and transfer book, and creates an official record for regulatory compliance. The document is particularly important as it triggers the recognition of the transferee as the new shareholder, enabling them to exercise their rights as a stockholder. This notice must be properly executed and filed with the corporate secretary, who then processes the transfer and issues new share certificates if necessary. In certain cases, particularly for listed companies or when required by the corporation's by-laws, additional requirements such as board approval or tax clearances may need to be attached to the notice.
