Section 3: Directors’ right to refuse registration of transfers

3. Directors’ right to refuse registration of transfers Subject to compliance with sections 87 to 89, the Board may refuse or delay the registration of any transfer of any share to any person whether an existing shareholder or not, where— (a) so required by law; C35 – 213 [Issue 1] Companies Act (b) registration would impose on the transferee a liability to the company and the transferee has not signed the transfer; (c) a holder of any such share has failed to pay on the due date any amount payable thereon either in terms of the issue thereof or in accordance with the constitution (including any call made thereon); (d) the transferee is a minor or a person of unsound mind; (e) the transfer is not accompanied by such proof as the Board reasonably requires of the right of the transferor to make the transfer; (f) the pre-emptive provisions contained in paragraph 2 have not been complied with; or (g) the Board acting in good faith decides in its sole discretion that registration of the transfer would not be in the best interests of the company and/or any of its shareholders.