It is common that the transfer of shares will not be permitted in private corporations without the approval of the directors and/or the shareholders, and that a certain voting majority (e.g. 75% or 100%) approval will be required for a transfer. This permits the shareholders to control ‘who they are in business together with’. This clause sets out the types of transfers that are subject to the restriction, including granting security interests (or liens) on the shares, since failure to pay the loan would result in the transfer of the shares to the creditor. The clause usually restricts transfers to transfers ‘in accordance with this agreement’ or ‘in accordance with the corporation’s constating documents’ because some transfers will be permitted in those documents (e.g. transfer to ta corporation controlled by the shareholder).