Under section 58(2) of the Companies Act, 2013, the securities or other interest of any member are…

Section 58(2) of the Companies Act, 2013 provides that, without prejudice to section 58(1), the securities or other interest of any member in a public company shall be freely transferable. Its proviso makes any contract or arrangement between two or more persons about the transfer of securities enforceable as a contract (formerly section 111A of the Companies Act, 1956).

A private company must restrict the right to transfer its shares by its articles (section 2(68)), and section 58(1) deals with its refusal to register a transfer. Free transferability is therefore not the rule for every company limited by shares, and being foreign does not attract it.