(1) Subject to the by-laws, no transfer of shares in a society is valid for any purpose unless—
(a) a written application for membership by the transferee is approved and the transfer is authorised by—
(i) a resolution of the directors, or
(ii) a person authorised by a resolution of the directors to approve applications and transfers of that kind; and
(b) notification of any approval given under paragraph (a) is sent to the transferee and his or her name has been entered on the register of members.
(2) Despite subsection (1), a transfer of a share is valid for the purpose of evidencing the rights of the parties to the transfer between the transferor and the transferee.