https://www.taxtmi.com/caselaws?id=19363 Company status as one in which the public are substantially interested under the Income-tax Act requires shares to be freely transferable within the statutory conditions. Private-company restrictions in the articles, including limits on membership, prohibition on public invitations, and pre-emption rights, prevent free transferability; a board's power to remove restrictions does not itself establish that character. The transferability requirement applies to all shares, not merely a specified proportion. Consequently, a company retaining its private character does not qualify for the status of a company in which the public are substantially interested. en-us Thu, 08 Sep 1994 00:00:00 +0530 Thu, 05 Nov 2009 16:42:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19363 Company status as one in which the public are substantially interested under the Income-tax Act requires shares to be freely transferable within the statutory conditions. Private-company restrictions in the articles, including limits on membership, prohibition on public invitations, and pre-emption rights, prevent free transferability; a board's power to remove restrictions does not itself establish that character. The transferability requirement applies to all shares, not merely a specified proportion. Consequently, a company retaining its private character does not qualify for the status of a company in which the public are substantially interested. Case-Laws Income Tax Thu, 08 Sep 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19363