Priority among transferees
Where a shareholder has fraudulently sold his shares to two different transferees, the first purchaser will, on the ground of time alone, be entitled to the shares in priority to the second.
For example:
A person (Mr. A)-----assigned property & shares-----to creditor (Mr. B). Creditor (Mr. B) failed to register share in his name-----but give notice of assignment in his favour to the company.
Later on assignor (Mr. A)----sold the shares to someone else (Mr. Z). It was held in this case that assignee’s (Mr. B) claim----prior in time-----so he is entitled to registration of shares in his favour over and above the claim of Mr. Z.
