Can I stop another shareholder transferring their shares to someone else?

 

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15. Can I stop another shareholder transferring their shares to someone else?

The articles of association of a private company, or a shareholders' agreement, can include restrictions on the transfer of shares.

The usual restriction is that the directors can refuse to register a proposed transfer - although they must only do so if it is for the long-term good of the company - in it's legal jargon it promotes the long-term success of the company.