Any clause in any agreement/ Article of Association restricting free transferability of shares of public companies is void and non- enforceable

Western Maharashtra Development Corpn. Ltd. Vs Bajaj Auto Limited [MANU/MH/0109/ 2010] In a decision, which is likely to have a wide impact on joint ventures/investment in public companies, the Bombay High Court (“Court”) has recently held that any clause in an agreement which restricts the free transfer ability of shares of public companies is void and non- enforceable, even if such restrictive clause is incorporated in the Articles of Association of the company. Background/Facts Western Maharashtra Development Corporation (“Petitioner”) entered into a Protocol Agreement (“Agreement...