Please outline detailed procedure for decreasing shareholding of a shareholder (holding 39% currently) in a private company.
Also please specify whether another shareholder's shareholding can be increased or whether the capital of the company shoud be decreased?
Mention the forms as well for filing the same
HI Bharti,
There is no provision in the Companies Act, 2013 regarding the reduction of share holding of a shareholder.
However if you want to reduce the shareholding % of a particular shareholder you may ask the shareholder to transfer the shares to other shareholder.
Rergards,
Arjun Rajagopal
O P Bagla & Co LLP
New Delhi
CA Inter
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