https://www.taxtmi.com/caselaws?id=98542 Directors' discretion under the articles to refuse registration of a share transfer must be exercised promptly and within a reasonable time. A shareholder has a prima facie right to transfer shares unless valid restrictions apply. The statutory requirement to notify refusal within two months indicates that four months without a decision is unreasonable. On expiry of the reasonable period without refusal, the contractual power to reject the transfer lapses, the transferee's right to registration becomes absolute, and a later refusal is ineffective. 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 Directors' discretion under the articles to refuse registration of a share transfer must be exercised promptly and within a reasonable time. A shareholder has a prima facie right to transfer shares unless valid restrictions apply. The statutory requirement to notify refusal within two months indicates that four months without a decision is unreasonable. On expiry of the reasonable period without refusal, the contractual power to reject the transfer lapses, the transferee's right to registration becomes absolute, and a later refusal is ineffective. Case-Laws Companies Law Fri, 19 Jul 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98542