RIGHT
OF TRANSFEREE ON SHARES PENDING REGISTRATION OF TRANSFERS. Generally
entries n the "Register of Members "may take some time. However, the
transferee's right to dividend, Bonus Shares, Right shares etc, stands fully protected.
However, the transfer deed must have been delivered to the company before the
record date or book closure; otherwise this benefit would be lost. It should be
noted that the transferee can get the dividend in respect of shares under transfer,
only if he secures a mandate therefore from the transferor and produces the same
before the company (sect 206 A) Where dividend has already been declared,
the transferee (buyer, whose name is not registered), may lodge the shares and
other relevant documents, with the company, for being registered in his name,
within 15 days from the date when dividend became due.
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