15 July 2010
The article of a company provides that if a member becomes insolvent, his shares were to be sold to a nominee of the company at a fixed price. Is the provision binding of all members? whether the trustees on bankrupcy can claim the shares?
16 July 2010
In my view, this should be read as an enabling clause which provides an easy exit to the shareholder in case he requires funds. A member cannot be forced to surrender his shares of the Company, if he becomes insolvet.
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