Question

Transfer of shares in the partnership firm is _________.

• A. Marginally restricted
• B. Freely transferable
• C. Prohibited
• D. None of the above

Answer 1

The correct option is A Marginally restricted

The restrictions on transfer of shares in private companies flow from the partnership principle, which is the soul and basis of private companies. These restrictions, as stated above are considered essential in a private companies which is usually a group of trading persons bound together by close ties of friendship . These close associations can be established with anyone and everyone so easily and therefore , these members seek to keep the shares of such a company with in the group.