Refusal by Company to Register The Transfer of Shares
When Company has a right to refuse
The circumstances, in which a company may refuse to register the transfer of shares, are different, for company listed on stock exchange and unlisted company.
- Where the instrument of transfer is not properly signed or stamped or not properly executed.
- Where the transfer of security is in contravention of any law composition of
- Where the Board of Director, may change, to such on extent, because of transfer, which may affect interest of company.
- Where the transfer is prohibited by any law.
- If partly paid up shares are being transferred and the transferee is known to be financially incapable of paying balance calls.
- If partly paid up shares are being transferred to a minor incapable of entering into a contract.
- In case due call money has not been paid by the transferor.
- When the transferor is a debtor of the company, and the company has a lien on such shares.
- If instrument is incomplete, irregular and defective, and not properly stamped.
- On other reasons, just and equitable and are in the general interests of the company.