(Australian Law only please)

Shareholders of Stones Ltd have been selling parts of their shareholdings, thus increasing the total number of members. The company has no constitution.The managing director, Mick is unhappy about this trend as the cost of maintaining the share register and sending materials to members is increasing.He wishes to implement a rule to give the directors power to control the transfer of shares so that they can restrict the number of members.

Advise Mick if he can successfully achieve his aim.

[Note: "Transfer" is the term used to describe the sale or purchase of a share from one shareholder to another.]