Shareholders in privately owned companies must stick to the restrictions on share transfers as per the agreement. Such restrictions are established for different reasons. The following are some of the common restrictions on share transfers;

• Who can buy or sell the company shares
• The number of shares that can be transferred
• The existing shareholders, or a majority of them, must unanimously agree or consent to the transfer of shares
• The existing shareholders must resolve and approve the share transfer.
• Pre-emption rights; they give the present members a right to first refuse shares before they are offered to others outside the company.