Dear All
Does transfer of shares to one of the relative of director is covered under contract or arrangement under section 299 of the Companies Act, 1956?
Please go through the below case of a public unlisted company:
The Company has allotted shares to its employees under Employee Share Purshase Plan. A Share Transfer Committee has been formed consisting of 3 members for approving transfer of shares. Some shares are to be transferred from an employee to a person who is related to two members of the Committee. Can the transfer be approved by the Share Transfer Committee? or the Committee needs to be reconstituted for adding more members?
Also consider the case of a private company having two directors who are also the members. Can they transfer shares among themselves/ or their relatives in the Board Meeting?
Does transfer of shares to a relative involves any interest of a director?
Regards
Preeti Gandhi
Does transfer of shares to one of the relative of director is covered under contract or arrangement under section 299 of the Companies Act, 1956?
Please go through the below case of a public unlisted company:
The Company has allotted shares to its employees under Employee Share Purshase Plan. A Share Transfer Committee has been formed consisting of 3 members for approving transfer of shares. Some shares are to be transferred from an employee to a person who is related to two members of the Committee. Can the transfer be approved by the Share Transfer Committee? or the Committee needs to be reconstituted for adding more members?
Also consider the case of a private company having two directors who are also the members. Can they transfer shares among themselves/ or their relatives in the Board Meeting?
Does transfer of shares to a relative involves any interest of a director?
Regards
Preeti Gandhi
CAclubindia
