06 December 2010
A company, in which the directors hold majority of the shares, altered its Articles so as to give power to directors to require any shareholder, who competed with the company’s business, to transfer his shares, at their full value, to any nominee of the directors. Mr. Sen had some shares in the company, and he was in competition with the company. Is Mr. Sen bound by the alteration?
06 December 2010
Nope... Transferring shares due to whcih a major change is about to come in, majority or minority of shareholding, its not allowed....
CAclubindia
