18 March 2011
Can a member of a private company who is an overseas citizen of India transfer her shares to her father by way of gift deed, if the AOA of the Company says "No shares shall be transferred to any person who is not a member of the Company so long as any member is willing to purchase the same at a fair value to be determined by the Auditors of the Company".
21 March 2011
Since the AOA contain such restrictive provisions on transfer of shares, the shares have to be first offered to the members and only on their refusal it can be transferrred / gifted to non-members.
Other experts are requested to give their views on the subject.
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