Following the provisions of the Companies Act, a third party can become a new member of a limited liability company based on the transfer of shares by registered members of the limited liability company, as well as based on the accession of a new member with a simultaneous increase in the share capital.
Transfer of shares
The basic rule is that the transfer of shares is free unless otherwise determined by the Companies Act or the Articles of Association.
The Companies Act establishes the following restrictions on the transfer of shares:
- pre-emptive right
- share transfers with the consent of the company
- company’s right to designate the share purchaser and
- the obligation to buy shares.
The articles of association of a limited liability company may provide for other types of restrictions on the transfer of shares.