Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2010 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (7) TMI 288 - HC - Companies LawWhether an award under the Arbitration and Conciliation Act, 1996 directing the transfer of shares to a party falls within the ambit of the second proviso to section 108? Held that:- The entitlement to shares pursuant to an award made under the provisions of the Arbitration and Conciliation Act, 1996, is in consequence of lawful means other than by a transfer in accordance with the Articles of Association of the Company. Thus, the acquisition of the said shares by and pursuant to the award falls within the ambit of Article 23. The consent of the board having been accorded to the same, it cannot be said that the registration of the said shares by the board of directors was contrary to the Articles of Association of the Company. The impugned action of the Board of Directors of registering the shares pursuant to the said award is, therefore, neither contrary to section 108 nor to the Articles of Association of the Company. Thus the appeals are allowed.
|