https://www.taxtmi.com/caselaws?id=111269 Pre-emptive rights under Article 8 required newly issued shares to be offered first to existing shareholders. Allotment to a non-member without complying with that requirement was treated as illegal and void, which also invalidated a subsequent transfer of part of those shares to the appellant; the company was permitted to re-allot the shares lawfully to existing shareholders. By contrast, Article 22 permitted transfer of shares to an existing member or family member without the transfer-notice procedure under Article 23. Since the transferee was an existing shareholder and the Board approved the transaction, the transfer was valid. en-us Fri, 04 May 2007 00:00:00 +0530 Sat, 21 Apr 2012 15:33:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=111269 Pre-emptive rights under Article 8 required newly issued shares to be offered first to existing shareholders. Allotment to a non-member without complying with that requirement was treated as illegal and void, which also invalidated a subsequent transfer of part of those shares to the appellant; the company was permitted to re-allot the shares lawfully to existing shareholders. By contrast, Article 22 permitted transfer of shares to an existing member or family member without the transfer-notice procedure under Article 23. Since the transferee was an existing shareholder and the Board approved the transaction, the transfer was valid. Case-Laws Companies Law Fri, 04 May 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=111269