Transfer of shares in the joint stock companies

ABSTRACT Share is one of the most fundamental elemente of the joint stock companies. Also the transferability of the shares constitutes a principle which is peculiar to the joint stock companies and plays a vital role in performing the economic and social functions which are imposed to them by the lawmaker. Because, the ability of the shares to circulate in a free and easy way, encourages individuals to spend their savings in order to be a shareholder of a joint stock company. And as a result of this, the great amount of money which is collected as share capital can be used by these companies for making some important investments. However, the application of the transferability of the shares principle in an unlimited way may cause some problems. In order to prevent these problems, some limitations are brought to this principle. These limitations can be collected under three groups. These are the legal and voluntary limitations of the transferability of the shares and the situations where the validity of the transfer depends to an official permission. With the voluntary limitations of the transferability of the shares which are the most effective ones among the others, the joint stock companies can be protected against the corruption of its special structure and strangers, by the binding provisions placed within their statutes. Because of the importance of the transfer of the shares, the lawmaker granted the ability to the shares of being represented by certificates which are also negotiable instruments in order to make their circulation easier. The fundamentals and exceptions of the transferability of the shares principle and transfer procedures of the shares, represented by certificates or temporary certificates and the legal consequences of the transfer will be examined within this thesis. vm