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.
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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.
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1. Subs. by Act 21 of 1999, sec. 8, for “shares” (w.r.e.f. 31-10-1988).
