https://www.taxtmi.com/caselaws?id=98808 Share-transfer registration may be refused under section 111 of the Companies Act, 1956 only where the company's Articles of Association expressly confer that power. Article 42 permitted refusal where the company held a lien over the shares or, for partly paid shares, where directors did not approve the transferee. Fully paid shares did not satisfy the latter condition, and no evidence supported the alleged lien. Refusal based on the transferees being undesirable or seeking control of the company was therefore outside the directors' authority. Where refusal lacks authority under the Articles, examination of alleged mala fides is unnecessary. Registration of the transfer does not affect any valid lien over the shares. en-us Fri, 26 Feb 1971 00:00:00 +0530 Tue, 24 Jan 2012 11:13:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98808 Share-transfer registration may be refused under section 111 of the Companies Act, 1956 only where the company's Articles of Association expressly confer that power. Article 42 permitted refusal where the company held a lien over the shares or, for partly paid shares, where directors did not approve the transferee. Fully paid shares did not satisfy the latter condition, and no evidence supported the alleged lien. Refusal based on the transferees being undesirable or seeking control of the company was therefore outside the directors' authority. Where refusal lacks authority under the Articles, examination of alleged mala fides is unnecessary. Registration of the transfer does not affect any valid lien over the shares. Case-Laws Companies Law Fri, 26 Feb 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98808