The Company ABC Ltd was being promoted by XYZ corporation.The Shares were subscribed by Corporation by representation of MD and other subscribers as nominees of the Corporation. The shares certificates were held by the Corporation itself.The Nominees were the senior official of the Corporation. Now on their retirement the shares held by them were to be transferred in the name of new incumbents.
In view of the above plese clarify:
1. Can the Corporation legally hold Shares in its own name?
2. Why the Corporation should have Nominee?
3.Do the Nominees have any right in respect of the Shares held by them?
4. What should be the procedure to transfer the shares?
Kindly support your views with relevant Sections/Clauses.
Thnxs & Regards,
Ritu
CAclubindia
