Q54: What exactly are restrictions on the transfer of shares?
ringo tax corporation
Japanese Certified Public Accountant ・Tax Accountant Hiroya Aihara
Ringo Tax Corporation
A: Restrictions on the transfer of shares are a system where a shareholder needs the company's approval to transfer their shares to a third party. This limits shareholders from freely transferring their shares and is a mechanism for the company to manage changes in its shareholders.
Questioner: Then, why is it necessary to place restrictions on the transfer of shares?
A: By imposing restrictions on share transfers, it is possible to stabilize the company's management. It prevents frequent changes in shareholders or the emergence of an unspecified large number of shareholders, allowing for effective decision-making in executing the company's management policies and strategies. Additionally, it can reduce the risk of the company's interests or policies being compromised by the free transfer of shares by shareholders.
Questioner: Can you tell me about the benefits of setting restrictions on share transfers?
A: Setting restrictions on share transfers makes it easier for the company's management to control the composition of its shareholders. This allows for the appropriate execution of the company's management policies and strategies, ensuring the company's stability and potential for growth. Moreover, by limiting the free transfer of shares by shareholders, it protects the company's interests and future prospects.
