TaxTMI 
TaxTMI 
Imposition of restrictions upon shares and debentures and prohibition of transfer of shares or debentures in certain cases.
X X X X Extracts X X X X
X X X X Extracts X X X X
....t be found out unless the restrictions specified in sub-section (2) are imposed, the [6][Tribunal] may, by order, direct that the shares shall be subject to the restrictions imposed by sub-section (2) for such period not exceeding three years as may be specified in the order.[7] (2) So long as any shares are directed to be subject to the restrictions imposed by this sub-section___ (a) any transfer of those shares shall be void; (b) where those shares are to be issued, they shall not be issued; and any issue thereof or any transfer of the right to be issued therewith, shall be void; (c) no voting right shall be exercisable in respect of those shares; (d) no further shares shall be issued in right of those shares or in pursuance of a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....al] may, by order at any time, vary or rescind any order made by it under sub-section (1) or sub-section (3) or sub-section (4). [15][(6) * * *(7) * * *]. (8) Any order made by the [16][Tribunal] under sub-section (5) shall be served on the company within fourteen days of the making of the order. (9) Any person who____ (a) exercises or purports to exercise any right to dispose of any shares or of any right to be issued with any such shares when to his knowledge he is not entitled to do so by reason of any of the said restrictions applicable to the case under sub-section (2); or (b) votes in respect of any shares whether as holder or proxy, or appoints a proxy to vote in respect thereof, when to his knowledge he is not entitled to do ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....5-1991, for the words "Where it appears to the Central Government, whether in connection with any investigation under section 247, 248 or 249 or otherwise". [3] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified. [4] The words and figures "248 or 249" omitted by the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000. [5] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified. Earlier the quoted words were substituted for "Central Government" by the Companies (Amendment) Act, 1988, w.e.f. 31-5-1991. [6] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notif....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eby a change___ (a) in the composition of the Board of directors, or (b) where the managing agent is an individual, of the managing agent, or (c) where the managing agent is a firm or a body corporate, in the constitution of the managing agent, of the company is likely to take place and the Central Government is of the opinion that any such change would be prejudicial to the public interest, that Government may by order direct that any transfer of shares in the company during such period not exceeding three years as may be specified in the order shall be void." [9] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified. Earlier the quoted words were substituted for "Central....