Justify the following statement.The Board of Directors can refuse the

1.	Justify the following statement.The Board of Directors can refuse the transfer of shares.
Answer» Board of Directors can refuse transfer of shares as they have authority to refuse registration of transfer of shares. A notice of refusal of transfer is to be sent by the board to a member within 30 days from the date on which the instrument of transfer is received by the company. The board may refuse to register the transfer under the following conditions. When the provisions for transfer of shares as given in the Articles of Association is not fulfilled by the member. When the instrument of transfer is not as per the rules prescribed under the Companies Act. When the instrument is not accompanied by the share certificate. When the company has a lien on the shares to be transferred.

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