Section 378ZD Transferability of shares and attendant rights
- Chapter
- XXIA · Producer Companies
- Amendments
- 1
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021378ZD.Transferability of shares and attendant rights.—(1) Save as otherwise provided in sub-sections (2) to (4), the shares of a MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. of a Producer Company shall not be transferable.
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(2) A MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. of a Producer Company may, after obtaining the previous approval of the Board, transfer the whole or part of his shares alongwith any special rights, to an active MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. at par value.
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(3) Every MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. shall, within three months of his becoming a MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. in the Producer Company, nominate, in the manner specified in articles, a person to whom his shares in the Producer Company shall vest in the event of his death.
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(4) The nominee shall, on the death of the MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records., become entitled to all the rights in the shares of the Producer Company and the Board of that Company shall transfer the shares of the deceased MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. to his nominee:
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021Provided that in a case where such nominee is not a producer, the Board shall direct the surrender of shares together with special rights, if any, to the Producer Company at par value or such other value as may be determined by the Board.
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(5) Where the Board of a Producer Company is satisfied that—
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(a) any MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. has ceased to be a primary producer; or
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(b) any MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. has failed to retain his qualifications to be a MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. as specified in articles,
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021the Board shall direct the surrender of shares together with special rights, if any, to the Producer Company at par value or such other value as may be determined by the Board:
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021Provided that the Board shall not direct such surrender of shares unless the MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. has been served with a written notice and given an opportunity of being heard.