A shareholder who is not a member cannot maintain an application under section 241 of the Companies Act 2013 – Nipha Trade and Commerce Pvt. Ltd. Vs. Girish Malpani – NCLT Hyderabad Bench

The Adjudicating Authority held that no rights arise till such registration takes place. The completion of the transaction by having the name entered in the register of members relates it back to the time when the transfer was first made. The company recognises no person except one whose name is on the register of members, upon whom alone calls for unpaid capital can be made and to whom only the dividend declared by the company is legally payable. Of course, between the transferor and the transferee, certain equities arise even on the execution and handing over of ‘a blank transfer’, and among these equities is the right of the transferee to claim the dividend declared and paid to the transferor who is treated as a trustee on behalf of the transferee.

A shareholder who is not a member cannot maintain an application under section 241 of the Companies Act 2013 – Nipha Trade and Commerce Pvt. Ltd. Vs. Girish Malpani – NCLT Hyderabad Bench Read Post »