Shareholders are real owners of the Company. They have limited liability towards the company. They have powers to appoint directors who manage the company affairs in routine. Transfer of shares has the effect of a change in ownership. Share transfer in a private limited company is usually restricted. Shares have to first be offered to existing shareholders for sale.

Share transfer can be effected subject to a relevant provision in the Articles of Association of a Private Limited Company. Therefore, it is important to review the Articles of Association of the Company prior to effecting a share transfer for Private Limited Company.

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