Power of Branch Auditors

VUELVE (CA- Student) (351 Points)

11 March 2010  

Hello Friends,

 

Suppose there is a Private Limited Co. and the Directors of the Private Limited will be generally relatives or friends, and if this company has 2 directors i.e., 2 persons are relatives say both are brothers. And if this company wants to convert it to public limited then can these two brothers become directors for the company forever ? Is it in their hands ? Or they will remain as promoters only ?

 

The Business idea belongs to these brothers and its a private company and if they wanted it to convert the company as public limited then they should have a min. of 5 lakhs as capital. And if the entire 5 lakhs are brought by these two brothers then can they only become directors of the company including some other relatives as directors to make it as 7 members ? When these two brothers are bringing the capital 5 lakhs from their pocket then will there be any obligation that the directors should be appointed by central govt. or any other body ?

 

I have too many queries like this so please let me know the answers for the above queries and then later i'll post all my queries if any further.

 

Thank You...!!