A shareholder's right to transfer his or her shares to another party can be subject to restrictions set out in the bylaws or a shareholder agreement.

Question

Quizplus · Accepted Answer

Shareholder agreements or the bylaws of a corporation can include provisions that restrict the transfer of shares, such as right of first refusal, tag-along rights, or drag-along rights, to ensure control and stability within the company.

A Shareholder's Right to Transfer His or Her Shares to Another