06 April 2011
Ours is a closely held company with hardly 100 sharholders . Now some of the shareholders who are having small number of shares approched by group of sharholders to buy their share holdings . As the management do not know the intention ,we want to refuse transfer of shares . Is it correct ? or what is the remeady available to the management against such transfer ?
06 April 2011
You say, there are 100 shareholders. So I presume it's a public limited company. Public limited company cannot have put restriction on transfer of shares.
06 April 2011
Yes, Public limited company cannot restrict the Transfer of Shares. Even any acts of director attracts the provisions Penal action under the provisions of "OPPRESSION OF MANAGEMENT" under companies act,1956
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