 am mo 74 of ,966 'fi1lr companies (amendment) bill, 1966 a billfurther to amend the coirpiinies act, 1956 db 'if @ilided by parliainent in the seventeenth year of the :republlc ()f ihdia as follows:-5 1 'this act may be called the companies (amendment) act, 1966 short title 2 in section 108 of the companies act, 1956,-,amend-(1) for suo-sections (la), (lb) and (ie), the following ment sub-sections shall be, and shall be deemed to have been, substitu- of secftthion  1080· e ted on the 1st day of april, 1966, namely:-companies  (la) every instrument of transfer of shares shall be act, 1956 in such form as may be prescribed, and-10 (ll) every such fonn shall, before it is figned hy or on behalf of the transferor and before any entry is made therein, be ptegented to the pre!eribed authority, being - persott ah'ady in the service of the government; who shall stamp or otherwise endorse thereon the date on which it is so presented, and (b) every instrument of transfer in the prescribed form with the date of such presentation stamp~d or otherwise endorsed thereon shall, after it is executed 5 by or on hehalf of the transferor and the transferee and completed in all other respects, be delivered to the company,-(i) in the case of shares dealt in or quoted on a recognised stock exchange, at any time before the 10 date on which the register of members is closed, in accordance with law, f()r the first time after the date of the presentation of the p~cribed form to the prescribed authority under clause (0) or within two months from the date of such presentation, which- 15 ever is later; (ii) in any other case, within two months from the date of such presentation (1b) notwithstanding anything contained in sub-;' section, (ia), an instrumf!nt of transfer of shares, executed 20 ,,~ 'before' the commencement of section 13 of the companies (anieddni~,j~'~( 'j96i;~~ ur e~eeuted after su~h~tommence­ment in a form other ,athan the prescribed form, shall be accepted by a com~:yr;:-- ij  ; , " ,(~), ~,  ~~ ,cr~ ~f ,s~~~s ,~~t,,~,~or quoted on a 25 ,l, 'recogliiseri"ktdck exchange; "m: 'any'" titti~ not later than the, expiry' of fdx, ~o~als from sucb'cq~eucment or the date on which the i~gilftm':pf' jm~~!,' uj r"'ed, in , acc,~r~~ce ~i~ la:w, for, tj:ae first ,~~~ ,~,er: such:'" commencement, whichever is later;  " 30 -1 , i ,', ','", '  ," fi!u4i cb), in any other' case, 'at' any tilde not later than 11 the expiry of'six months from bucll' cojdjherieement ,;i      (le), n~~':,c~ect)~' ,u~edi~(la)~;~d (lb)                                                                         ,~ shall apply t~' _' ",                                                         i                                                                         1                                                "                                                                                                                                                                                                                                                                                               ~ (a~ra~:b~ar~ :'                                                                                                                               "                                                                                                                                                                                                                                                                           3s                                                                                                                                                                                                                                                                                               i'           (i) 'which is )leld ,by: ,8 cqfjlpany in any other  , ,body 'c~rporate ,in ~the:,um~ ~                                                ,a,~ector or nominee , in pui:$u~e ef ~,~~~on' (2) '- qr' as the case may '\ ,be, sub  sedi,on, -(3) i ~\~o~ ,49"01;' (ii) which is held by a corporation, o\w"ned or :-control1ed' by the central govenmient or - state goveniment, in any other body corporate in ttw name ,  ofa director or nominee, or (iii) in respect of which a declaratioh has been made to "the, public trustee under section l~  11-10 is (1) 'the' company or corporation, as the c~ule may be, stamps or otherwise endorses, on the form of transfer in, respect of such share, the date oft which it decidef5 ,that such ,share shd,l'ilgt be held in the name of ,tlu! ,ssi~ director or n~ or, as the case may be, in the case of any share ~'respect of which any such~' declaration lias, been made to tht public trustee, the pubiic trustee stampjl} or otherwtle end9,ses ,on the form of transfer in respect of such ~are under his seal, the date on which the form is p,r~sented 'to him, and " : '(2): the instrument of transfer in such form, duly completed in all respects, is 'delivered to the--20 (a) body corporate in  whpse share such company or corporation has mde invlltment in the name of its director~~~ee, or " "~"" ' " ":' , ', :" (b) company inwhicb'eaeh:~ 11 held in :1 • 'j:' ~ trust,: \, - ~'t:,) ' '"  -, • :: j (' ~ 1 { ,,~ r : • r· '     -,  "  ,- , _  " within i:wo, months of the date so' stuipect' or other-, : vnse endoised; or ,,' , ' i ' -,(b) ~y sh~re deposited by any ~rson with-(i) the state bank of india, or (ii) any scheduled bank, or 30 (iii) any bailking company (other than - scheduled bank) or financial institution approved by the central government by notiftcationiil' the official 35 g~ett~ (and any, such approval may be a~corded so as't6 '~e retrqspective to any date not earur than the 1st day of april, 1966), or (iv) the central goverrunent or a state government ow any c~ticbl owjled or cobu"olled by the central government or a s~~ government, by way of security for the repayment of oy loan or advance to, or for the performance of any obligation under- 5 taken by, such person, if-(1) the bank, institution, government or corporation, as the case may be, stamps or otherwise endorses on the form of transfer of such share-(g) u1e date od wlrldl sud! share is return- 10 ad by, •• to the depo6i\or, or "(b); ib the case 01 fauuj9 od the part of the depoltto'r'tt) ftpay the loan or' aclvace or to perform the obligation, ~ date on which such share is released fol' sale by ~h buk, institution, 15 gov8l'llment or corporation, as the 'case may be, or (c) where the bank, institution, government or corporation, as the case may be, intends to get such share registered in its own name, the 20 date on which the instrum~t of transfer relating wauch share is ex~~ted by tt; ~4f (2) the instrument of transfer in such form, duly completed in all respects, is delivered to the company within two months froid the date so stamped 2s 8p'lddened ~-where _7 mvaatment by a company or a corporation in the name of ita tlflector or nominee referred to in clj~ (a) (i) or clause (a) (ii), or any declaration referred to in clause (a) (iii) i or any deposit 30 referred to in clause (b), of this sub-section is made after the expiry of the period or date menti9ned in clause (a) of sub-iection (1b) or after, the expiry of the period mentioned in clause (b) of that sub-section, as the case may be, the form of transfer, in respect of the share 35 which is the lubjec:t of such invtlltmedt, declaration or deposit, means the prescribed form; (c) any'share which is held in any company by the central government or a state governmeqt in the name of its nominee, except that every instrument of transfer 40 which is executed on or aft~ the 1st day of october, 196~ in respect of any such share shad be in the prescribed form"; (ii) in sub-section (1 d) , (i) after the words, brackets figure and letter "or subsection (ib) ", the words ,brackets figure and letter "or sub-section (ie) "; and  l~5 (j:') after the wq~ ·'aa it may deem fit" the words "whether web applieation ij made before or after the e-l'piry of the peiioda afofesql"; shall be and shall be deemedto have been, inserted on the 1st day qf april; 1968  !  "10 3 notwithstanding any jqcilm,~t decree ar ardelr of any court validaor trlbuual to the ~~, ar a~ythb1g contained in any law for tim the time being in force no q:rd~ ~ regulation or appouitment made, c:lireetion liven or thing dofte; by the chairman or any other member of the company law board, acting individually 'before the , or 1965 t ·1 i s commencement of the companies (amendment) act, 1965 shall be deemed to be invalid, or ever to have become invalid, 'by reason only of the fact that such chairman or other member acting individually, had no power to m~ke such order, rule regulation or appointment or give such direction or do such thing and every such 20 order, rule, regulation q1" "ppoint~~t ~ aad aver)' ~ dir~tiojl given and thiog done' ehall be d~~4 to have been made, given or done, 8s the cue may be, by til, c~pany ljw board 4 (1) the compania (anlenchnedt) ordinance, 19&6 is hereby repeal repealed ~ saving s (2) notwithstanding such repeal anything done or any action 2 taken undei- the said ordinance shall be deemed to have deed done or taken under the corresponding provision of this act, as if this art had commenced on the 21st day of september, 1988 section 108 of the companies act relating to transfer of shares and debentures was' amended by the companies (amendment) act, 1965 in pursuance of the reeommendations of the vivian bose inquiry commission the object of the amendment _ was to regulate and control the currency of b~l!l~ ~r~f~, pf shares for ijus purpose new sub-sections (la) to (ld) were inserted 'in section' 108' these new provisio~ were brought into force on the 1st of' april~ , '1968 , ~~:') ~ but 'immediately ;thei'sf_rtiuestf9ju( arose 'as to whether the~effect, ') of' th~' new provisions' ,was- only to !egulateand~coittrol the current;y 'ol'blailk' traps~~()frshares' or to 'prohibit ~thejri'l81together  a:s:vi~~g, 'were'divergeflfl an "this'-'pobit, it -was thought that,' in order te; niiuntmn the! mootpi :auncti6ntng of -the stock::exchailges·': and capital '~ketit'shoultp'be1n8de clear that the object underlying the hew 'provisions was 'hot: lo' 'prohibit' blank transfers altogether but otlly to restrict tbeir cwte!dcy· by the amendments idsertedin section 108 by the amending act of 1965, some other recommendations of the vivian bose inquiry commic:-sion were also not given effect to ab stock-exchanges and capital market were, directly involvoo in 'th~ niatter;"urgehi legislative action was ,called- for; but as parliament \vas- 'not' 'iii sessioh', the situatimi was met by the promqlgation of an ordinance by the president on the 21st september, !, ~' 1966; ,i the:blll see1cfi01geprace,jh~':ordinance~>' '-; ~'- ' '! j " ":1 " ···11 ••• -•• '" - ' v 1 ;~!  ~ ; ,r \: " ;: ' ~  ~ ~" ": ~ " ,  ! i " ~; -'n\:w delhi'" ,,' g ,so pathak   :  ;  ;   t'; "' the 27th october i 1966 the new sub-section,' proposed to be' ,substituted, for su,b-section (la) of section 108 by dall$e 2 oj the bill, provides inter alia tha t every instrument of trarist;i- of '~ates shall be in the prescribed form and shall, before it li: signed, by or on behalf of the transferor and 'before any entry is made therein, be presented to the prescribed authority for the endorsemerlt! of·  tft~ date of such presentation thereon the word ''pr~~~~  ps beendejined in the companies act as prescribed by rules therefore, the form of the instrument of transfer and the adthority before whom ,it is to be presented will have to ~ presc~4f(l:qf~('tq~~;~~awrcentra1 government these are- matters of detail and '~an better be prov!ded for '," by ru1es~ the delegation of the legislative pcwer in thi' :beh~ft is ", of a normal character  annexure extracts from the companies act, 1958 ,(1 or 1956) -  part iv- - 108 (1)  - •  ,  n-ansfa!r of mm and de~i - • •- transfer n~ to be reais1 tered cxc:epfi on prod~ tien of" jns~;a of tra (la) every instrument of transfer of shares-(a) shall -be in the prescribed form and presented to the prescribed authority before it is signed by or on behalf of the transferor and the prescribed authority shan stamp or otherwise endorse thereon the date on which it is so presented, and (b) shall be delivered to the company,-(i) in the case of shares dealt in or quoted on a recognised stock exchange at any time before the date on which the register of members is closed in accordance with law for the first time after the date of such presentation, (m) in any other case, within two months from the date of such presentation (1b) any instrument of transfer which is not in conformity with the provisions of sub-section (la) shall not be accepted by a company-(a) in the case of shares dealt in or quoted on a recognised stock exchange, after the expiry of six months of the commencement of the companies (amendment) act, 1965 or after the date on which the register of members is closed in accordance with law for the first time after such commencement, whichever is later; (b) in any other case after the expiry of six months of such commencement -(ic) lhe provisions of sub-section (ia) shall not apply to any shares deposited by any person with-(a) the state bank of india; (b) any scheduled bank; or (c) such banking company (other than a suheduled bank) or financial institution as may be approved by thl!' c~tral govermilent by notification in the ofbcial gaiet·te,'·'  by way of security for the repayment of any loan advanced to, or for the performance of any obligation undertaken by 8uch person (1d) notwithstanding~anytbing in sub-section (1a) or subsec lion (ib), where in the opinion of the central government it is necessary so to do to avo!d bardship in any cas~t tha government may on an application made to it in that behalf extend the periods mentioned in those sub-sections by such further time as it may deem fit; and the number of extensions granted hereunder and the period of each such extension shall be shown in the annual report laid before the houses of parua- ment under section 638 - - - - -                           a                        bill further tqamend the ccmpanies act, 19$6                                     -~~~--'~ : , ' i _ (shn° g s pathak, minister 0/ laflj) 