Transfer of shares

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This query is : Resolved

sidhartha (Querist)

18 January 2015 Hello Team, I am one of the directors in a pvt ltd company in mumbai. we have 3 directors, The stake division is like this: myself-34% Director 2: 33% Director 3: 33% Initial capital-1 lakh we r 9 months old. roles were defined at the start for each. but one of the directors has not really contributed anything interms of his profile which was into handling technology and online marketing stuffs. But he has a software developer who has developed our basic website and a designer who haas done few designing stuffs, Now he claims he has spent 6 lakhs on these people. Actually he has counted thier salaries and efforts. But its really basic job, My expectation was more than that..for which he had 33% stake. This is not justification of his stake %age. I plan to give his expenses i.e 6 lakhs and transfer all shares to me or my wife who is more capable of doing the job.she can become the drector. Now this director is not transferring stake to anybody else. He says i will not transfer stake to anybody. Now what shoudl i do?? i am in the middle of a mess-I have clients and this organization is growing. Please help and advice.

Read more at: https://www.caclubindia.com/forum/transfer-of-shares-to-other-director-317188.asp#.VLsyEiuUeSo

c.bakshi

c.bakshi (Expert)

20 January 2015 Sir,

There is no provisions in the Companies Act, 2013 to Expel a member from the company. if it is in the articles of the company or a company adopt such thing in the articles of the company then such provision is treated as void and it will not have a legal effect.

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