Ask PLC Home

Practical Law may have moderated questions and answers before publication. No answer to a question is legal advice and no lawyer-client relationship is created between the person asking the question and the person answering it. Where appropriate, you should consult your own lawyer for legal advice. Practical Law's employees are not practising solicitors or barristers. The Ask scope and rules apply.

Transfer of shares: can a shareholders' agreement include a provision that prohibits the transfer of shares to third parties?

If a shareholders' agreement contains pre-emption rights in favour of the other shareholders and those shareholders choose not to exercise their rights of pre-emption, can the shareholders' agreement state that, in the absence of the pre-emption rights being exercised by the other shareholders, the proposed transferor is prohibited from transferring the shares to anyone else (that is, can the shareholders' agreement completely fetter the transferor's ability to sell to a third party purchaser)?
Anonymous (Private Practice)

Request a free trial

To access this resource and thousands more, register for a free, no-obligation trial of Practical Law. Register using the button below, telephone +44 (0)20 7202 1220 or e-mail

A free trial will give you:

Unlimited access to Practical Law online know-how
Thousands of market standard documents and clauses
Daily alerts and weekly update e-mails on key legal developments in your practice area


Log in

To access this resource, log in below or register for free access.

Contact us

Our customer services team are available every working day 8.30am to 7pm (GMT).

{ "siteName" : "PLC", "objType" : "PLC_Doc_C", "objID" : "1248455050890", "objName" : "Transfer of shares can a shareholders agreement include a prov", "userID" : "2", "objUrl" : "", "pageType" : "Resource", "academicUserID" : "", "contentAccessed" : "false", "analyticsPermCookie" : "2-605a14e:15af51f9872:2440", "analyticsSessionCookie" : "2-605a14e:15af51f9872:2441", "statisticSensorPath" : "" }