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Small Business - Restrictions on the Right to Transfer Shares. Most small business owners want to set restrictions on the transfer of shares by the shareholders of their corporation. In this way, the business owner maintains control over a fellow shareholder selling shares to a third party without his/her consent. In all likelihood, you will want to restrict the transfer of all classes of shares.
Shareholders' Agreements: If the owners of the corporation are partners, there should be a shareholders' agreement setting out their mutual rights and obligations and dealing with the election of directors, resolution of deadlock votes, agreements among all the shareholders (unanimous shareholders' agreement), a buy-sell clause that allows shareholders to buy out a co-owner's shares or be bought out, or what happens if a owner-shareholder dies. The shareholders' agreements are prepared separately from the incorporating documents and are not filed with the government.
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