Rights of an director

Pvt ltd 741 views 2 replies

Three Directors joined togather starts a ABC Private Limited and all the THREE DIRECTORS have equal no. of shares in that company.

now two of the directors joined togater start another company for example (123 private limited) and they transfered some assets from ABC Private limited to 123 private limited without the knowledge of the thired director of the ABC private limited  Company.

my question is the Thired Director of the ABC private limited have any Rights befour the company law board or any other authority.

what are all the legal actions he have to take.

Replies (2)
Hi in this case the third director may apply to CLB for relief from oppression. He must prove that the other directors transferred the assets to the other company without proper approval in board meeting and in General meeting.

and if the second business is related to the same category of 1st business, all the profit made from 2nd co is considered to be the profit of 1st  co, ant the 3rd director is equale participant for that profit


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