Indian Bare Acts

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The Companies Act, 1956

Title : The Companies Act, 1956

Year : 1956

   

Sec206A    -    Right to dividend, rights shares, and bonus shares to be held in abeyance pending registration of transfer ofshares.

Where any instrument of transfer of shares has been delivered to any company for registration and the transfer of such shares has not been registered by the company, it shall, notwithstanding anything contained in any other provision of thisAct,

    (a) transfer the dividend in relation to such shares to the special account referred to in section 205A unless the company is authorised by the registered holder of such share in writing to pay such dividend to the transferee specified in such instrument of transfer ; and

    (b) keep in abeyance in relation to such shares any offer of rights shares under clause (a) of sub-section (1) of section 81 and any issue of fully paid-up bonus shares in pursuance of sub-section (3) of section 205.

 

Last updated on May, 2015

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