| Commentary

171 Transfer of shares

| Commentary

B: TRANSFER AND TRANSMISSION

171 Transfer of shares

Shares are transferable in accordance with the company’s articles1. In the absence of transfer restrictions in the articles, a member has the right to transfer his shares to any transferee without the consent of anyone, even though that transferee is a man of straw.

Many private companies’ articles impose some restriction on transfers, for example, by giving the directors power to refuse to register transfers of shares on which any call remains unpaid, or a general power to disapprove of the proposed transferees. Such a refusal must be by resolution of the board, otherwise

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