Section 44 of the Companies Act, 2013

Section 44 of the Companies Act, 2013Nature of Shares or Debentures

📘 Text Summary of Section 44:

Section 44 declares the ownership and transferability nature of shares and debentures issued by a company.

Key Provisions of Section 44:

Movable Property:

The shares or debentures (or any other interest of a member in a company) shall be movable property.

Transferable:

These securities are transferable in the manner provided by:

The Articles of Association of the company, and

The provisions of the Companies Act, 2013.

📝 Meaning & Implications:

Shares and debentures are considered movable assets, like money or goods—not immovable property like land.

They can be bought, sold, transferred, or inherited.

While public companies must allow free transfer of shares, private companies may restrict transfer through their Articles.

📌 In Simple Terms:

If you own a share or debenture of a company, it’s your movable asset, and you have the legal right to transfer or sell it, as per the company’s rules and the law.

 

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