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      Question

      A promoter of a company transfers his shares to another

      person without proper disclosure. The transfer is questioned on the ground that it violates disclosure requirements. Under which section of the Companies Act, 2013 are share transfer regulations and restrictions on transfer prescribed?
      A Section 45 Correct Answer Incorrect Answer
      B Section 46 Correct Answer Incorrect Answer
      C Section 47 Correct Answer Incorrect Answer
      D Section 48 Correct Answer Incorrect Answer
      E Section 49 Correct Answer Incorrect Answer

      Solution

      Section 47 of the Companies Act, 2013 deals with "Restriction on transfer of securities". The section provides that notwithstanding the provisions of the Constitution, no public company having a share capital shall register a transfer of shares in the company unless a duly stamped transfer deed is lodged with the company along with the certificate of title or other evidence of ownership. The section further provides that a company shall not register a transfer unless certain conditions are met, including proper documentation and the absence of stop transfer orders. Section 45 addresses types of shares, Section 46 addresses rights of shareholders, Sections 48-49 address transmission and transmission of shares, but Section 47 specifically prescribes transfer regulations.

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