company act related query?

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NILESH (Querist)
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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?

CA Dhiraj Ramchandani

CA Dhiraj Ramchandani (Expert)
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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....