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Articles of Association of a company provided that a shares of a member who has become bankrupt shall be offered for sale to other shareholders
Articles of Association of a company provided that a shares of a member who has become bankrupt shall be offered for sale to other shareholders at a certain price. On a shareholder becoming bankrupt, the trustee for his estate challenged the provision in the Articles as void since the bankrupt shareholders has the right to recover a fair price. Decide the issue keeping in view the binding effect of Articles on the rights of shareholders. (No there information given)
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