Can we stop a family shareholder giving shares to the 'black sheep' of the family?

 

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5. Can we stop a family shareholder giving shares to the 'black sheep' of the family?

The company's memorandum and articles of association, or a shareholders' agreement, can include restrictions on share transfers. For example, share transfers might require the approval of the board, or existing shareholders might have the right of first refusal on any shares being offered by another shareholder.