A director and shareholder in a company notified the company of his resignation and transfer of shares to another and the company reported that to the Registrar of Companies. Later, the shareholder contended that the actions should be declared null and void because the documents he signed were not those required under law.
The Court held that the share transfer and the replacement of the director is valid. The Companies Registrar's register of shareholders and directors is evidence of the correctness of such registrations, and it is possible to move to ament the registration. The register at the company is the one that counts and in the absence of such register, external documents attesting to the identity of shareholders and directors will be used. The law requires certain documents for the transfer of shares, but when there are grounds for enforcement of a share transfer agreement, the transfer will not be canceled only because it was not duly executed from the formal aspect. Here, the conditions for enforcing the share transfer and therefore it is valid even if it does not meet the procedural conditions required under law