Skip to content

Restrictions on Share Transfers by a Joint Stock Company

Shares issued before a company’s public offering may not be transferred within one year after the company’s shares are listed and traded on a stock exchange. Where laws, administrative regulations, or the securities regulatory authority under the State Council provide otherwise regarding transfers by shareholders or actual controllers of listed companies, those provisions shall prevail.

Directors, supervisors, and senior management personnel shall report to the company the shares they hold in the company and any changes in those holdings. During the term of office determined upon appointment, the shares transferred by any such person in any year may not exceed 25% of the total shares of the company held by that person. Shares held by such persons may not be transferred within one year after the company’s shares are listed and traded. They may not transfer their shares within six months after leaving office. The articles of association may impose additional restrictions on such transfers.

Where shares are pledged during a statutory restricted-transfer period, the pledgee may not exercise the pledge during that period.

Updated October 3, 2026
  • Important notice: The information on this website is for general reference only and does not constitute legal advice. For specific issues, you should seek advice from a qualified lawyer. Contact our lawyers for professional assistance. https://legalidea.cloud
  • Our lawyers have extensive legal experience and have handled a large number of complex and difficult legal matters for our clients, helping them meet challenges head-on.

Legal service

Professional Legal Services

Special Legal Counsel

Human resources / Corporate governance / Investment and financing / Equity incentives, and other complex legal matters

Dispute Resolution

Case assessment / Pre-litigation dispute resolution / Litigation / Arbitration

General Retainer Counsel

Flexible retainer plans for enterprises at every stage of development

Corporate Compliance

Learn more, contact us