The Companies Act, 1956
82. Nature of [shares or debentures].
82. Nature of 1[shares or debentures].The 1[shares or debentures] other interest of any member in a company shall be movable property, transferable in the manner provided by the articles of the company.
The shareholders cannot among themselves enter into an agreement which is contrary to or inconsistent with the articles of association of the company. A private agreement whereunder there is a restriction on a living member to transfer his shareholding only to the branch of family to which he belongs is not binding either on the shareholders or on the company; V.B. Rengaraj v. V.B. Gopala Krishnan, JT 1991 (4) SC 430: (1992) 1 SCC 160: AIR 1992 SC 453.
1. Subs. by Act 21 of 1999, sec. 8, for “shares” (w.r.e.f. 31-10-1988).