Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment his Department has made of the impact that restrictions on secondary sales of private company shares have on economic growth and new business creation.

Section 771 of the Companies Act 2006 requires companies to register a share transfer or provide reasons to the transferee for not doing so. Private companies’ articles of association, which must be approved by shareholders, may include provisions covering the secondary sale of shares. Such provisions may seek to balance the alignment of employee interests with the company’s long-term prospects while also considering the impact any restrictions have on employee share liquidity. In May 2025, the Government legislated to establish PISCES (Private Intermittent Securities and Capital Exchange System), the legal framework for a new type of stock exchange for private companies. PISCES makes private secondary markets more transparent and efficient, enabling employees, founders and early-stage investors to realise and reinvest their gains.