Legal limit reduces in company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2013 In Private Company limited by shares , there is only two members. and one member is retire or resign the company .Is company will be exist or not ?if yes/No then why ?

Ajay Mishra

Ajay Mishra (Expert)
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17 November 2013 Hi

If a company having member less than the required member then they can carry on business for not more than 6 months after that the other member and director of the company will be liable for penalty.

As per your queries, appointment of director where director of the company is less than the quorum fixed by article for the meeting of the Board. In your case the, the quorum is not, because of the resignation of one director out of the two director.

In such case you must follow the provision of your company articles read with clause 75 of the Schedule I- Table A of the Companies Act, 1956.

Regards
CS Ajay Mishra

Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2013 Yes, but after resignation of member ,there is only one member(director)then existence of company still remains or lost just after the resignation ....?

Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2013 Yes, but after resignation of member ,there is only one member(director)then existence of company still remains or lost just after the resignation ....?

Ajay Mishra

Ajay Mishra (Expert)
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18 November 2013 Member can not resign. he can only transfer his her shares to others. The director only can resign from the company.

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