Therefore, the absence of a registry did not prevent and does not prevent the applicant from being registered as a shareholder, if there is no other impediment to her registration in the shareholders' register.
The fact is that the lack of a register of shareholders in the company did not prevent the foreign companies as shareholders of the shares, which it transferred to Milmus, from becoming full partners in the company and sending directors on its behalf to the board of directors. In this regard, the respondents did not raise the argument of the lack of a register as a reason to prevent the participation of the foreign companies in the board of directors and the management of the company. This claim came only because of the liquidation request and in order to put an additional obstacle in the way of the applicant.
Moreover, a shareholder in a private company is a person who is registered in the Register of Shareholders, or a person who holds a share deed, as stated in Section 176 ofthe Companies Law. By virtue of Milmus's holding of the share deed that was transferred to it by the foreign companies, it owns half of the shares in the company.
Registration of the Applicant as a Shareholder
- The Applicant argues that, in the absence of a register of shareholders in the company, and in view of the evidence she brought regarding the purchase of shares from the foreign companies, it should be determined that she was entitled to be registered as a shareholder in the company, and she should be considered registered, and in any event, she should be considered a "participant" for the purpose of filing the application for liquidation. In any event, the registration in the registry is nothing but prima facie evidence of the correctness of what is recorded therein, as stated in section 133(a) ofthe Companies Law.
The respondents, in contrast to the Applicant, argue that in the company's articles of association it was determined that the company's board of directors is alone, and at its sole discretion, may refuse to register a transfer of shares "to a person whom they do not want as a member of the company". The company will also not recognize the person holding the share as a trustee, except by a court order; Hence, the Board of Directors did not approve the registration of the transfer of the shares from the foreign companies to Milmus, and it does not recognize the Listing Company as holding the shares of Milmus as a trustee.