Q&As

Can a company’s articles of association contain an absolute prohibition on the transfer of shares except where a price is agreed between the transferring shareholder and the remaining shareholders?

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Published on LexisPSL on 18/11/2016

The following Commercial Q&A provides comprehensive and up to date legal information covering:

  • Can a company’s articles of association contain an absolute prohibition on the transfer of shares except where a price is agreed between the transferring shareholder and the remaining shareholders?

Shares are personal property (moveable property in Scotland) and transferable in accordance with a company's articles of association, subject to:

  1. the Stock Transfer Act 1963 (STA 1963)

  2. regulations made under Chapter 1, Part 21 of the Companies Act 2006 (CA 2006) (this broadly deals with the transfer without written instrument of uncertificated shares)

Shareholders in a private company or an unlisted public company will often wish to control, as far as possible, who becomes a fellow shareholder in the comp

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