Counting of Members in Private Ltd company

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Suhas Vaidya (Querist)

12 July 2010 will the employees of private limited company will continue to be excluded from counting as member in another private limited company the shares of which were received by them as part of demerger scheme? Both companies are under same management.

Srikant

Srikant (Expert)

12 July 2010 Shares received under a demerger Scheme entitle the Member status to the holder of shares.

But they still remain employees of that private ltd. Co, where they are working as employees without any shares.

Suhas Vaidya

Suhas Vaidya (Querist)

12 July 2010 Hi Srikant

Just to clarify

A - Demerged company
B - Resultant Company

Employees of A will get shares of B but they will remain employees of A company.

Will they be counted as employees in company B.

Srikant

Srikant (Expert)

12 July 2010 No,
may be the management is same, but they will be treated as members of that Company in which they are shareholders. (Particularly)

They will be treated as employees in other Co, from where they are getting their salaries and enrolled in Pay slip.

Employees of A may get the shares of B (in this case they are members of B)but still they will be counted as employees of A and not members.

However you are saying that,the employees got the Shares on account of demerger, that means they were earlier shareholders of A,,,,,,,,in such case these employees can be treated as members of A if and only if the employees are still having the shares of A even after Demerger.

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