Cos 126 — Right to dividend, rights shares and bonus shares to be held in abeyance pending registration of transfer of shares

Companies Act, 2013

Statutory text

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.

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