COMPANIES ACT - 1963 (ACT 179)

    Section - 294 - Restrictions on the Transferability of Securities of Public Companies

    (1) Notwithstanding subsection (2) of section 95 of this Code, the Regulations of a public company shall not impose any restriction on the right to transfer any shares of the company and if the Regulations purport to impose any such restriction it shall be ineffective:

    Provided that this subsection shall not,

    (a) prohibit any restriction on the right to transfer any shares on which there is an unpaid liability; or

    (b) preclude any company from refusing to register a transfer of shares to any person who is an infant or to any one found by a competent court to be a person of unsound mind.

    (2) Notwithstanding subsection (2) of section 97 of this Code, a public company shall not after the commencement of this Code issue any debenture of the company which imposes any restriction on the right to transfer such debenture and if the debenture purports to contain any such restriction it shall be ineffective:

    Provided that this subsection shall not render ineffective any restriction contained in a debenture issued before the commencement of this Code or while the company was a private company.