https://www.taxtmi.com/caselaws?id=6264 Free transferability of shares under section 23A of the Indian Income-tax Act, 1922 is not negated merely because a public company's articles empower directors to refuse registration of proposed transfers. A director's power, when exercisable reasonably and in a fiduciary capacity for the company's interests, is not an absolute restraint on share transfers. In the absence of evidence that the power was abused or that other articles imposed effective transfer restrictions, the shares retain the required quality of free transferability. The company may therefore be treated as one in which the public are substantially interested. en-us Tue, 24 Aug 1971 00:00:00 +0530 Wed, 03 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6264 Free transferability of shares under section 23A of the Indian Income-tax Act, 1922 is not negated merely because a public company's articles empower directors to refuse registration of proposed transfers. A director's power, when exercisable reasonably and in a fiduciary capacity for the company's interests, is not an absolute restraint on share transfers. In the absence of evidence that the power was abused or that other articles imposed effective transfer restrictions, the shares retain the required quality of free transferability. The company may therefore be treated as one in which the public are substantially interested. Case-Laws Income Tax Tue, 24 Aug 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6264