Certification of share certificate

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 July 2010 X want to transfer 100 shares out of 300 shrares which he has got.company negligently given a original certificate,which the transferor has committed fraud with the certificate by pledging with the bank.
Now my question is whether is company liable to third party(i.e Banker)?

Rasesh

Rasesh (Expert)
Follow

02 July 2010 This is an error on part of the Company in form of negligence. The Bank has the legal rights against the Company as well as the person who has committed the fraud.

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2010 But for every negilgence why company is responsibe?Why not me make directors/sevants of the company responsible?

Upgrade to CAclubindia Pro. Subscribe Now!

Rasesh

Rasesh (Expert)
Follow

02 July 2010 You are right in your observation. The officers in default would also be laible.