The right of approval, written into a company's articles of association, enables a company to avoid "undesirable" Shareholders. The right of approval clause requires every partner to obtain the approval of the company prior to selling any shares. The company must render its decision within a specified time period. If no decision is rendered, approval is deemed to be granted.

(See Chapter 40 Setting up a company or financing start-ups of the Vernimmen)

To know more about it, look at what we have already written on this subject