Q&As

Where a shareholder transfers shares in a joint venture company which breaches the restrictions contained in the articles of association or shareholders' agreement, what remedies are available to the other shareholder?

read titleRead full title
Published on LexisPSL on 26/04/2017

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

  • Where a shareholder transfers shares in a joint venture company which breaches the restrictions contained in the articles of association or shareholders' agreement, what remedies are available to the other shareholder?

Where a shareholder transfers shares in a joint venture company which breaches the restrictions contained in the articles of association or shareholders' agreement, what remedies are available to the other shareholder?

When deciding to enter into a joint venture, parties will want to consider carefully the identity of the other proposed parties to the joint venture and the experience and resources that they will bring to the joint venture. They are therefore likely to want to ensure that the parties remain involved in the joint venture (at least for a pre-agreed period of time) and therefore have some controls over who they transfer their shares to. For the common types of restrictions on the transfer of shares that are included in joint venture transactions, see Practice Note: Share transfers—corporate joint ventures.

Transfer restrictions in the articles of association

Where the restrictions on the transfer of shares are included in the articles of association, in general, an act in

Popular documents