Section 126 of Companies Act, 2013 – Right to Dividend, Rights Shares and Bonus Shares to be Held in Abeyance Pending Registration of Transfer of Shares

  • Updated Till : June 15, 2024

SECTION 126. RIGHT TO DIVIDEND, RIGHTS SHARES AND BONUS SHARES TO BE HELD IN ABEYANCE PENDING REGISTRATION OF TRANSFER OF SHARES

[Effective from 1st April, 2014]

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 this Act,—

(a) transfer the dividend in relation to such shares to the Unpaid Dividend Account referred to in section 124 unless the company is authorised by the registered holder of such shares 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 62 and any issue of fully paid-up bonus shares in pursuance of first proviso to sub-section (5) of section 123.

3 responses to “Section 126 of Companies Act, 2013 – Right to Dividend, Rights Shares and Bonus Shares to be Held in Abeyance Pending Registration of Transfer of Shares”

  1. To the corporatelawreporter.com administrator, Keep up the good work!

  2. Ahaa, its fastidious discussion on the topic of this piece of writing at this place
    at this web site, I have read all that, so now me also commenting here.

  3. Very great post. I simply stumbled upon your blog and wished to mention that I’ve truly enjoyed browsing your weblog posts. After all I will be subscribing in your feed and I am hoping you write again soon!

Leave a Reply

Your email address will not be published. Required fields are marked *

Corporate Law Referencer

Corporate Law Referencer

Corporate Law Referencer

India’s Leading Compliance Software

India’s Leading Compliance Software

Get A Demo Today !

Recent Articles

Recent Legal updates

Recent Gst Updates