Share Transfer Restrictions- A Case Comment on Balaji Auto Ltd. v. Westerm Maharashtra Development Corporation Ltd.

by Sandhya Sridhar

The Bombay High Court in Balaji Auto Ltd. v. Western Maharashtra Development Corporation Ltd. has clarified legislative intent of Section 111A of the Companies Act, 1956 (hereinafter “the Act”) and Section 22A of the Securities (Contract) Regulation Act, 1956 (hereinafter “SCRA”) with regard to the enforceability of the pre-emption clause granting the right of first refusal in a shareholders’ agreement that it does not constitute a restriction on the concept of “free transferability” of shares. Continue reading Share Transfer Restrictions- A Case Comment on Balaji Auto Ltd. v. Westerm Maharashtra Development Corporation Ltd.