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Selling your Shareholding

When your shares are no longer benefiting you, selling them on can be harder than you realise.

Selling your shares in a private limited company can be easier said than done, and there are various obstacles to overcome – both legal and political – in order to reach a successful outcome.

Owning shares can work well for many people, provided that the shares are working for them. Shares may be providing you with a dividend income, granting you a level of control within a company or they may come with some other benefits that allow you to achieve your commercial goals.

For example, if you are a shareholder in a private limited company, you may also be employed by the company meaning that it is in your best interest to have a say in how it is run.

However, there are times when you might consider selling your shares. You may be looking to capitalise on the value of the company or you may feel marginalised or forced out of the company.

Unlike when a shareholder owns shares in a publicly listed company, such as Boots plc or Shell plc, there is no ready market for shares in private limited companies. That can make it very difficult to sell the shares – or at least to sell the shares at anything that represents an accurate assessment of the true share value.

Even once the question of value has been addressed, you should know that there can be other obstacles to selling a shareholding, such as pre-emption rights and the requirement for the board of directors to approve registration of any sale.

We are experts at what we do and can advise you on how best to proceed when you want to realise the value of your shareholding.