https://www.taxtmi.com/caselaws?id=214986 A transfer of fully paid-up shares made after commencement of winding-up proceedings did not confer contributory status on the transferee. Although section 428 of the Companies Act, 1956 includes holders of fully paid-up shares within the term "contributory," that provision did not override section 536(2), which renders post-commencement transfers void unless validated by the Court. As the winding-up petition had been presented before the transfer and the order related back under section 441(2), the surrounding facts, including undervaluation, linked management, and no validation request, showed the transfer was not bona fide. The transfer was therefore void and the applicant was not a contributory. en-us Mon, 10 Oct 2011 00:00:00 +0530 Wed, 20 Jun 2012 11:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=214986 A transfer of fully paid-up shares made after commencement of winding-up proceedings did not confer contributory status on the transferee. Although section 428 of the Companies Act, 1956 includes holders of fully paid-up shares within the term "contributory," that provision did not override section 536(2), which renders post-commencement transfers void unless validated by the Court. As the winding-up petition had been presented before the transfer and the order related back under section 441(2), the surrounding facts, including undervaluation, linked management, and no validation request, showed the transfer was not bona fide. The transfer was therefore void and the applicant was not a contributory. Case-Laws Companies Law Mon, 10 Oct 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=214986