Settlement to director

Hi All,

At the outset, I have started the company with another Director with initial capital of 1 lac. After 4 months other Director cited personal reason and informed me that he will going to resign(Given deadline till April 25th). we have invested another 2 lacs(1 lakh each) for office premises including furniture, rent advance, etc.,

Now he asking for the settlement apart from the share tranfer money. I do not want to close it coz i have penentrated the market and expecting good businees in the near future. till now we haven't done any business from it. Please suggest me how to go about it.

Thanks

Murthy

Umesh or /Murthy (whoever you are)

You need to appoint another person as Director. Only then your friend can resign from the Board. If he is a shareholder, the consideration for transfer of shares by him to transferee is an internal matter/contract between the two.

REgards,