19 September 2013
pls suggest me a pvt ltd company wants to divest its shareholding/ownwrship to deferent entities (whether individual/companies) more than 10% shareholding to each, what process/ section should be adopeted under the companies act and what restrictions/impact for the same in the incometax act.
It is to be noted that any transfer of shares to an outsider without complying with the procedure as specified in the articles for effecting transfer of shares will not be operative against the company. Even in the case where the procedure prescribed by the articles was not followed and such failure was not due to any fault on the part of the selling shareholder, the transfer to an outsider was held not to be effective. Transfer of shares without consent of holder of shares and without prior sanction of board of directors as required under articles of association of a private company concerned could not be held to be valid. [John Tinson Co. (P) Ltd. v Mrs. Surjeet Malhan (1997) 88 Comp Cas 750 (SC)].
20 September 2013
thanks but what happen if the transferer company is a public ltd. (is there any deference) and what will be the restrictions/conditions under the incometax act. pls rply
CAclubindia
