Business Description

Section 44 of the Companies Act, 2013, emphasizes the nature of shares in a company and the shareholders' rights to transfer them. According to this section, shares held by shareholders are considered movable property and are transferable as per the Articles of Association (AOA) of the company. This implies that shareholders are granted the freedom to transfer shares, barring any restrictions imposed by the AOA.

This section is crucial because it establishes shares as a form of personal property, giving shareholders the right to freely transfer their shares unless restricted by the company’s internal regulations. In a corporate setting, understanding Section 44’s implications can help shareholders make informed decisions about their shareholding rights and the impact of transferring these shares.

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