Blank transfer DOUBT

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What happens when a Pvt ltd company shareholders issue blank transfer

Can they do so?

Because it violates the 'restriction on trasferability of shares' as per sec3(1)(iii) of Companies Act

And what happens when the solicitor of the competing company gets the transfer deed and wants to register the transfer in his name?

can the company impose restriction on this transferability, if yes in whose name the shares should get registered?

Replies (4)

a pvt. company may impose reasonable restriction on transferability .

however it can not impose absolute restrictions on transferability of shares

so it does not  violates sec3(1)(iii)

and other question answer is

refusal by com. is fall under common grounds for refusal to transfer the shares in pvt com...

company can refuse this transfer and shares are being in name of original shareholder

thanks jyotsna

ur wlecome


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