The Condition of the Company's Board of Directors' Approval as a Restriction on Selling Shares and its Impact on Shareholders' Rights in Jordanian Law: A Comparative Study

Abstract

The condition of approval may be of a personal nature because it requires the company's approval of the assignee proposed by the shareholder, and this is a primary goal in family or closed companies to ensure a degree of stability in management. The purpose of the approval record may also be to achieve certain considerations, such as ensuring that shares are not leaked to persons whose activities the company requires to be excluded from, such as foreigners, for example, who may be exposed to fluctuations due to the entry of the foreign element into them, and since the approval condition requires its application to be stipulated in the company's articles, and its application is limited to nominal shares only.