Business partner is starting competing business

Hi,

We are a private limited India company with 3 directors of equal shareholding.

Our company possesses an online software which our customers use and make the payment. This online software/website is the only source of income we have in the company.

Now, we are having some issues with 1 director as he went to his hometown 10 months back and not willing to show up for work.

Being in delimma we asked him to resign but he is asking huge amount of money, we can't even shut down the company (because it requires 75% shareholding) so we decided to make another similar software to cater the same market.

Please let us know, Is there any legal obligation or any malpractice we are doing?

Just to inform you,

1. The software/website doesn't possess any IPR (Intellectual Property Rights) or Copyright becasue it is a generic software and anyone can build it.

2. We have not signed any partnership agreement.

Replies (2)
U can hold d egm and obtain members approval for removal of director from the Board as per the companies act 2013.... For further clarification pls cal to 7204908392

We are in a similar situation and need clarity on the same. What were your findings in this regard? Is it malpractise?

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