As We Know Company Is A Separate Legal Entity Created by Law as An Artificial Judicial Person Having Own Many Characteristics Which One of The Most Important Characteristic Is Transfer ability of Shares, Shares Are the Movable Property of The Company Which Is Purchased by The Persons or Other Entity by Investing Money in A Company for Business. Every Listed or Private or Public Company Having Limited Liability Ownership Is Held by Their Members Which Is Known as Shareholders of The Company.
Infect the Shareholders of The Company Are the Persons Who Are Eligible or Responsible for Appointing A Director in A Company for Managing the Day to Day Affair of The Company Management.
If Any Existing Shareholder of The Company Want to Transfer His Share in Favor of a New Person Who Are Interested in The Company Business or To Another Existing Shareholders as Per Desired So They Have to Follow A Procedure for Transfer of Shares. Transfer of Shares Means When Existing Shareholder Voluntary Pass Over of The Rights and Possibly, The Duties of a Member (As Represented in A Share of The Company) From A Shareholder Who Wishes to Not Be A Member in The Company Any More to A Person Who Wishes of Becoming A Member.
Transfer of Share Is Only Possible If the Article of Association of Company Allowed This Especially in Case of Public Limited Company. In Other Case of Private Limited the Transfer of Share Is Restricted in Its Article Because the Shares Held by The Persons in This Type of Company Are Family & Friends That’s Why They Restrict the Transfer of Shares to An Outsider.