https://www.taxtmi.com/caselaws?id=100169 Share transfers to non-shareholders require strict compliance with the notice and pre-emption procedure prescribed by the articles of association. Shares were jointly held by the petitioner's husband and another shareholder; following the husband's death, the petitioner and that shareholder became joint owners. A transfer to an existing shareholder was permissible, but transfers to outsiders were invalid because the required notice was ineffective, the authorising resolution was affected by interpolation, and the directors' meeting lacked the quorum required under the articles. An outsider obtaining no valid interest could not transfer the shares onward. The register of members required rectification to remove invalid transfers while retaining the joint holding. Articles may prescribe a directors' meeting quorum higher than the statutory minimum if consistent with the Act. en-us Thu, 07 Jan 1982 00:00:00 +0530 Tue, 31 Jan 2012 14:46:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=100169 Share transfers to non-shareholders require strict compliance with the notice and pre-emption procedure prescribed by the articles of association. Shares were jointly held by the petitioner's husband and another shareholder; following the husband's death, the petitioner and that shareholder became joint owners. A transfer to an existing shareholder was permissible, but transfers to outsiders were invalid because the required notice was ineffective, the authorising resolution was affected by interpolation, and the directors' meeting lacked the quorum required under the articles. An outsider obtaining no valid interest could not transfer the shares onward. The register of members required rectification to remove invalid transfers while retaining the joint holding. Articles may prescribe a directors' meeting quorum higher than the statutory minimum if consistent with the Act. Case-Laws Companies Law Thu, 07 Jan 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=100169