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Solution Library
Denial of Registry to Shareholder on the Grounds of Bad Character
Question
Robert has just inherited 2500 shares in Hill Property Pty Ltd from his great aunt Jean who recently died. Hill Property Pty Ltd was her family company. Under the constitution of Hill Property Pty Ltd the directors are given some discretion as to whether they will approve the register of a transfer of shares. If the transferee is a relative of the Hill family they can only refuse to register the transfer if the person is not of good character. Apart from a couple of speeding fines Robert's character is beyond reproach. Despite these facts the directors refuse to transfer Robert's shares. Advise Robert of his rights, if any, under the Corporations Act 2001 and relevant cases.
Summary
The question belongs to Law and it discusses about a scenario where a person inherits shares from his aunt. The directors of the company refuse to register this person as a shareholder because of the company’s constitution that says that directors can refuse a person with bad character as a shareholder. The course of action open to the person has been discussed.
Total Word Count 203
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