Removal of a shareholder
This query is : Open
15 August 2017
Dear Experts,
One of my clients private limited has offered share to employee as right issue on a certain value . there was formal agreement for the same. he had taken the loan from company and bought the shares . We have filed PAS-3 for all shareholders. After few months he left the company and did not repaid the loan amount due to him. he however signed a note that if he he fails to repay the loan in 1 year his shares should be forfeited.He has not made any payment for last 1 year . Is it possible to remove him. we expect no co-operation from him if we transfer his shares.
What options we have to remove/terminate/transfer his shares from the company.
One of my clients private limited has offered share to employee as right issue on a certain value . there was formal agreement for the same. he had taken the loan from company and bought the shares . We have filed PAS-3 for all shareholders. After few months he left the company and did not repaid the loan amount due to him. he however signed a note that if he he fails to repay the loan in 1 year his shares should be forfeited.He has not made any payment for last 1 year . Is it possible to remove him. we expect no co-operation from him if we transfer his shares.
What options we have to remove/terminate/transfer his shares from the company.
19 August 2017
There is no provision for forfeiture of Shares by the Company in the circumstances given by you. The Company has given the loan for subscription of its shares is a contravention of Companies act.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Type of Capital Gain
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Accounting with Claude
- NRI INSURANCE ADVISOR
- LIABILITY ADJUSTMENT
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Applicability of Books of Account for Commission Income (Sections 194D & 194H)
- Gst on travel by air for business purposes
- Loss of interest in PF transfer from EPFO to Trust
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- TDS offline utility
- TDS on rent received on hardship compensation being rent on redevelopment of building
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
