The AoA of the company provided that the shares of the member of the company who became bankrupt would be offered for sale to other share holders at certain price. Is the provision binding on the shareholders?
Can someone help me by Giving legal Reasons?
no wrong provision.
COMPANIES ACT PROVIDES FOR REISSUE OF SHARES WHICH HAVE BEEN FORFEITED OR NON PAYMENT OF CALL MONEY. IN SOME CASES EXCESS SHARES WHICH HAVE BEEN APPLIED ARE OFTEN RETURNED TO THE APPLICANT.
CAclubindia
