Private limited

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2014 A Proprietor firm overtaken by a Private Limited in 2013,the proprietor converted Director have 10% of total shares. Other two Directors have equal remaining shares. Now, the Proprietor Director want to remove other two Directors.
Is it Possible ??

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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16 August 2014 He can not. Other two directors can not be removed without their consent.

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Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2014
Thanks Sanjay Sir...!!

Now, If these two directors want to open a new firm in such a way that directors could use Last 3years Balance sheet of above mentioned Pvt Ltd and Balance sheet of overtaken Proprietorship firm.

if its possible, Then the new firm could be partnership or it should be subsidiary...??

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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16 August 2014 Where they want to use the Balance Sheet? What is purpose of the same?

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Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2014 These two directors want to use Purchase Orders and Balance sheet of Private Limited Firm for participating in Govt. tenders through there New Firm....
How could New Firm could be shown Sister In Concern if Partnership Firm is opened ?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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16 August 2014 Can not be done. Best way is to participate in the tender in the name of the company. So much of shuffling is not good. Govt. These kind of shuffling will go against you in bagging the PO/tender.

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Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2014 what if subsidiary company is opened, then this company will legally capable of using Balance sheet/ PO...??

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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17 August 2014 Dear this way it wont materialize in tendering of Govt Companies. They will not consider it. I am telling because i am also involved in this process.

The applicant company need to have balance sheet under their name. If the applicant was earlier a firm and later converted into company then they can provide the balance sheet of that earlier firm in tendering process. But balance sheet of parent company can not be used by a subsidiary in tendering process. i dont know where is the issue why dont you participate in the name of present company? What is the reason?

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2014 Actually due to some conflicts with proprietor director.... due to which we want to start a new firm may be partnership, its partnership deed can state regarding the connection with Pvt Firm.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 August 2014 No dear it wont be of any use.

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Querist : Anonymous

Querist : Anonymous (Querist)

22 August 2014 Thanks Sir... so much for instant replies...
your advice ws very helpfull....!! :)

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