https://www.taxtmi.com/caselaws?id=99585 A valid sale of pledged shares may be effected by constructive delivery where the registered owner, having title, issues written directions, transfer forms and instructions to the pledgees to release the certificates to the purchaser. That transaction can confer an enforceable interest and a right to redeem the pledge on payment of the secured amount, with the pledgees obliged to receive redemption and deliver the certificates and transfer documents. However, statutory requirements for transfer of shares remain mandatory, and the company cannot be compelled to register the transfer until the transferee completes the prescribed formalities. The purchaser's right to seek registration is distinct from actual entry in the company's register. en-us Thu, 07 Apr 1977 00:00:00 +0530 Fri, 27 Jan 2012 18:47:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99585 A valid sale of pledged shares may be effected by constructive delivery where the registered owner, having title, issues written directions, transfer forms and instructions to the pledgees to release the certificates to the purchaser. That transaction can confer an enforceable interest and a right to redeem the pledge on payment of the secured amount, with the pledgees obliged to receive redemption and deliver the certificates and transfer documents. However, statutory requirements for transfer of shares remain mandatory, and the company cannot be compelled to register the transfer until the transferee completes the prescribed formalities. The purchaser's right to seek registration is distinct from actual entry in the company's register. Case-Laws Companies Law Thu, 07 Apr 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99585