https://www.taxtmi.com/caselaws?id=290208 A shareholder who accepted shares subject to a contractual pre-emption restriction was bound by that term as part of the bargain under which the shares were issued. The restriction did not bar transfer altogether; it only required the company to have the first opportunity to procure a purchaser, which was treated as a permissible and reasonable limitation on transferability. Because the shareholder and other shareholders had accepted that undertaking, later statutory provisions did not alter the position. The company was therefore entitled to refuse registration of the proposed transfer. en-us Mon, 25 Jul 1927 00:00:00 +0530 Tue, 15 Sep 2020 10:07:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=290208 A shareholder who accepted shares subject to a contractual pre-emption restriction was bound by that term as part of the bargain under which the shares were issued. The restriction did not bar transfer altogether; it only required the company to have the first opportunity to procure a purchaser, which was treated as a permissible and reasonable limitation on transferability. Because the shareholder and other shareholders had accepted that undertaking, later statutory provisions did not alter the position. The company was therefore entitled to refuse registration of the proposed transfer. Case-Laws Companies Law Mon, 25 Jul 1927 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=290208