Shares in a Private Limited Company

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venugopalareddy (Querist)
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17 August 2010 Hi
I have 2% holding in a private limited compnay.
Total shares 31,50,000
Now that company book value per share is Rs.18(Face value of Rs.10)
Due to my health conditions i would like to come out of that company
Management is willing to give to me only Rs.19 per share even though the book value is Rs.30
Artcles also says Purchase value to be "fair value to be determined herein after"
can you please suggest us how to proceed with this isssue
Is there any legal protection for me to get the amount at the rate of Rs.30 per share?
Is there any possibility that Fair value is less than the Book value Generally?

sivasankar

sivasankar (Expert)
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19 August 2010 Kindly go through the articles of the company and watch for the surrender of shares by the holder of the company clause and see whether the company can purchase at Rs.10.
If the articles says that the purchase cost is the face value and not the book value you are unlucky.
If nothing is mentioned write a letter to the company by registered post to purchase ur shares at Book value.Wait for the reply and take decision.

venugopalareddy

venugopalareddy (Querist)
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26 May 2011 Hi
I have 2% holding in a private limited compnay.
Total shares 31,50,000
Now that company book value per share is Rs.18(Face value of Rs.10)
Due to my health conditions i would like to come out of that company
Management is willing to give to me only Rs.19 per share even though the book value is Rs.30
Artcles also says Purchase value to be "fair value to be determined herein after"
can you please suggest us how to proceed with this isssue
Is there any legal protection for me to get the amount at the rate of Rs.30 per share?
Is there any possibility that Fair value is less than the Book value Generally?