A company is owned and controlled by individuals or corporate bodies by holding shares in the company, who are collectively known as shareholders of the company. The shares are considered as units of ownership in a company and it can be transferred from one person to another like any movable property.
Transfer of shares can be voluntarily done by the shareholders of company by transferring the title of shares from one party to another. The shares are transferred through a contract or arrangement between two or more persons. The shares of a Public Limited Company are freely transferrable whereas shares of a Private Limited Company are transferable subject to condition or restriction as specified in the Articles of Association (AOA) of company.