https://www.taxtmi.com/caselaws?id=110096 In a public company, a restriction on transfer of shares or a right of pre-emption is enforceable only if it is contained in the articles of association. A private family settlement or memorandum of understanding cannot override the articles or impose transfer restrictions where none exist. The transfer of promoter shares to outsiders was therefore valid and did not amount to oppression. After the change in shareholding and control, the induction of new directors followed naturally from the altered ownership structure and was not illegal. en-us Mon, 04 Jul 2005 00:00:00 +0530 Thu, 25 Apr 2024 11:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=110096 In a public company, a restriction on transfer of shares or a right of pre-emption is enforceable only if it is contained in the articles of association. A private family settlement or memorandum of understanding cannot override the articles or impose transfer restrictions where none exist. The transfer of promoter shares to outsiders was therefore valid and did not amount to oppression. After the change in shareholding and control, the induction of new directors followed naturally from the altered ownership structure and was not illegal. Case-Laws Companies Law Mon, 04 Jul 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=110096