Whether you can transfer and the mechanism depends on each company’s Articles of Association (‘Articles’) and the class of shares you hold. It is therefore important to understand the class of shares you will receive (see the Pitch page) and to read the company’s Articles before confirming your investment.
A company’s Articles often require that shareholders wishing to transfer shares offer them to existing shareholders first (pre-emption). The pre-emption procedure may vary between companies so if in doubt, read the Articles and contact the company that you have invested in. Crowdcube customer support will be happy to help if you have any further questions.
If a company chooses to adopt the Crowdcube Articles for two classes of share, A Ordinary Shares carry pre-emption rights, whereas B Investment Shares do not. This means that if a holder of A Ordinary Shares wants to transfer their shares, they must first offer them to the other holders of A Ordinary Shares. B Investment Shares are freely transferable which means a holder of B Investment Shares may transfer his or her shares without first complying with the pre-emption procedure, as long as that holder wishes transfer all of their shares to a single third party.
Crowdcube does not provide legal or investment advice so if you are in any doubt about the pre-emption rights or any provisions of the Articles, you should seek independent legal advice.