https://www.taxtmi.com/caselaws?id=292228 A corporate lien over fully paid shares, absent an express power in the articles or contract, operates only as a right of retention and does not authorise unilateral sale by auction. The company could not show any contractual basis, such as a lease deed or other written arrangement, to recover alleged rental dues through the shareholder's shares. Its auction and transfer process, carried out without the shareholder's consent and without an authorised procedure, was therefore invalid. Restoration of the shareholding and rectification of the register of members followed, with restraint on further dealings in the shares without consent. en-us Thu, 05 Mar 2020 00:00:00 +0530 Wed, 13 Nov 2024 12:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=292228 A corporate lien over fully paid shares, absent an express power in the articles or contract, operates only as a right of retention and does not authorise unilateral sale by auction. The company could not show any contractual basis, such as a lease deed or other written arrangement, to recover alleged rental dues through the shareholder's shares. Its auction and transfer process, carried out without the shareholder's consent and without an authorised procedure, was therefore invalid. Restoration of the shareholding and rectification of the register of members followed, with restraint on further dealings in the shares without consent. Case-Laws Companies Law Thu, 05 Mar 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=292228