Right to dividend, rights shares and bonus shares to be held in abeyance pending registration of transfer of shares
Section 126 of the Companies Act, 2013 deals with right to dividend, rights shares and bonus shares to be held in abeyance pending registration of transfer of shares. Where any instrument of transfer of shares has been delivered to any company for registration and the transfer of such shares has not been registered by the company, it shall, notwithstanding anything contained in any other provision of this Act,-- (a) transfer the dividend in relation to such share The Act came into force on 01 Apr 2014.
Where any instrument of transfer of shares has been delivered to any company for registration and the transfer of such shares has not been registered by the company, it shall, notwithstanding anything contained in any other provision of this Act,--
(a) transfer the dividend in relation to such shares to the Unpaid Dividend Account referred to in section 124 unless the company is authorised by the registered holder of such shares in writing to pay such dividend to the transferee specified in such instrument of transfer; and
(b) keep in abeyance in relation to such shares, any offer of rights shares under clause (a) of subsection (1) of section 62 and any issue of fully paid-up bonus shares in pursuance of first proviso to sub-section (5) of section 123.
Section 126, The Companies Act, 2013 (Act 18 of 2013).
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Questions about Section 126
What does Section 126 of the Companies Act deal with?
Section 126 of the Companies Act is headed "Right to dividend, rights shares and bonus shares to be held in abeyance pending registration of transfer of shares". Where any instrument of transfer of shares has been delivered to any company for registration and the transfer of such shares has not been registered by the company, it shall, notwithstanding anything contained in any other provision of this Act,-- (a) transfer the dividend in relation to such share
How do I find court cases under Section 126 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 126, section 126 Companies Act, section 126 of the Companies Act. People searching for it also type corporation act 126. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 126 of the Companies Act, and has it changed?
Its own text turns on section 62 (Further issue of share capital), section 123 (Declaration of dividend), section 124 (Unpaid Dividend Account), so none of them can safely be read on its own.
When did Section 126 of the Companies Act come into force?
Section 126 of the Companies Act, cited as Companies Act 126, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 16 Oct 2026. This page is not a substitute for legal advice.