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.
Related Resources
in the Legal Information Centre
- What are the most common problems with family businesses?
- How can we minimise the risk of disputes over the running of the business?
- What can I do if family members who work for the business don't get on well together?
- What can be done if a family shareholder is using their shares as a weapon in a family feud?
