Section 58 of the Companies Act, 2013
Section 58 of the Companies Act, 2013 deals with the refusal of registration and appeal against refusal in respect of shares of public and private companies.
📘 Section 58 – Refusal of Registration and Appeal Against Refusal
(1) Private Company:
If a private company refuses to register the transfer or transmission of any securities, it must inform the transferee or the person giving intimation of such transmission within 30 days from the date of receipt of the instrument of transfer or intimation.
(2) Public Company:
If a public company refuses to register the transfer or transmission of securities:
It must do so within 30 days of receiving the transfer deed.
It must send a notice of refusal to the transferee and the transferor.
(3) Appeal by Aggrieved Party:
If a person is aggrieved by the company’s refusal to register the transfer or transmission, they may appeal:
In the case of a private company, within 30 days to the Tribunal.
In the case of a public company, within 60 days to the Tribunal.
(4) Tribunal’s Power:
The Tribunal may:
Direct the company to register the transfer/transmission.
Order compensation if deemed fit.
(5) Penalty:
If a company contravenes this section, it shall be punishable with:
A fine of ₹1 lakh to ₹5 lakhs.
✅ Key Points:
Applies to both private and public companies.
Ensures transparency and fairness in transfer of securities.
Provides a remedy through the Tribunal for aggrieved parties.
RELATED Blog
0 comments