when you want to change the share structure of your company; either by adding a new shareholder or by changing the existing proportion of shares between shareholders. one of the key features of a company is that its shares are transferable. a share transfer agreement is an agreement that transfers shares from the vendor, to a purchaser corporation in exchange for shares in the purchaser corporation. section 44- the shares or debentures or other interest of any member in a company shall be movable property transferable in the manner provided by the articles of the company. a share transfer agreement can be used in conjunction with a share purchase agreement and a subscription agreement, when the payment for the vendor’s shares is made with shares of the purchaser corporation.