Private ltd - law

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Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2012 My father and my uncle are director in two Pvt ltd company
1)( chemical division ).
2)( Leather division)
Both having 24% shares each i.e 48 % total in both the companies.They are directors since formation of the company till today ( almost 15 years ). They are not involved in day to day activity of that business.

Now we wish to take over the private ltd business of leather division in our hand .And the other directors continue the other business of chemical division or vise versa.

Is it possible , please reply in details. Thank you

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)

16 June 2012 Dear Friend, yes it is possible to takeover business of one of your company. In this case your father and uncle will transfer their shares on your name.They can be director of both devisions if they want or otherwise they will resign after transferring shares in your name. In this case if your company has only two directors or two members them you have to include or induct another person as member of the company and director. Since two person required to carry on business as per section 45 of the Companies Act, 1956.

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