https://www.taxtmi.com/caselaws?id=98542 A shareholder has a prima facie right to transfer shares unless the articles validly restrict that right. Where the articles give directors a discretion to refuse registration, that power must be exercised promptly and within a reasonable time. The statutory notification period for refusal was treated as indicating that a four-month delay without any decision was unreasonable. If no valid refusal is made within that reasonable time, the contractual power to reject the transfer lapses and cannot later be exercised effectively, with the transferor's right to registration becoming absolute. en-us Fri, 19 Jul 1968 00:00:00 +0530 Fri, 16 Feb 2018 11:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98542 A shareholder has a prima facie right to transfer shares unless the articles validly restrict that right. Where the articles give directors a discretion to refuse registration, that power must be exercised promptly and within a reasonable time. The statutory notification period for refusal was treated as indicating that a four-month delay without any decision was unreasonable. If no valid refusal is made within that reasonable time, the contractual power to reject the transfer lapses and cannot later be exercised effectively, with the transferor's right to registration becoming absolute. Case-Laws Companies Law Fri, 19 Jul 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98542