That depends on the terms on which the shares were granted in the first place. These will be in the company’s articles of association. For public companies, a transfer of shares to your spouse (or any other beneficiary who is over 18) will invariably be allowed. Private companies’ articles will generally be more restrictive – and, if the shareholders have entered into a shareholders’ agreement, it may also regulate what you are allowed to do with your shares. Common terms are that:

• the directors can refuse to register a transfer of your shares to anyone (including your spouse)
• the shares must be offered to the other shareholders before they can be transferred to your beneficiary
• the shares can be transferred under your will, but only if the transfer is to a member of your family (which would include your spouse), or to family trusts

If shares cannot be transferred to your spouse, or other beneficiary, because of these restrictions, they usually become entitled to the cash equivalent instead, unless your will says the gift lapses in those circumstances. Take legal advice.