Selling your shareholding

Non-Registration

A further difficulty sometimes faced in seeking to sell a minority shareholding is that the Articles of Association for many companies will also contain provisions enabling the Board of Directors to refuse to 'register' (in broad terms to recognise or ratify) a transfer of shares Under current legislation, where the directors refuse to register a transfer of shares, the 'buyer' is entitled to receive information from the Board regarding the reasons for the directors' refusal to register the transaction.