Companies Act, 1956

Section - 320 - Payment to director for loss of office, etc., in connection with transfer of shares

Payment to director for loss of office, etc., in connection with transfer of shares.

320. (1) No director of a company shall, in connection with the transfer to any persons of all or any of the shares in a company, being a transfer resulting from—

          (i)  an offer made to the general body of shareholders;

         (ii)  an offer made by or on behalf of some other body corporate with a view to the company becoming a subsidiary of such body corporate or a subsidiary of its holding company;

        (iii)  an offer made by or on behalf of an individual with a view to his obtaining the right to exercise, or control the exercise of, not less than one-third of the total voting power at any general meeting of the company; or

         (iv)  any other offer which is conditional on acceptance to a given extent;

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