Hi,
I am new to this site and forum. Have been browsing this site regularly for the last couple of days and find it the most informative.
My query is:
How do I change the shareholding pattern in a Private Limited Company to reduce the stake of one of the directors from 25% to say 2%?
Currently there are 4 directors in the company each holding 25% each.
Thanks in advance.
Just transfer the share to any other director.
Assumed that evrything is normal, as query doesnt sound otherwise.
| Originally posted by : Jaideep | ||
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Just transfer the share to any other director. Assumed that evrything is normal, as query doesnt sound otherwise. |
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HI,
However if he is not willing to trsf his shares than u may consider of fresh allotment of shares.
Rgds, Ronak
Hi,
1. Section 3(1)(iii)(a) of the co. act 1956 provides that private company by its article should restrict the right to transfer its shares.
2. Generally the article of the company provides detailed provisions for transfer of shares.
3 In your case you can take following steps:
step1: Director give notice in writing
Step2: Co. in turn will notify to its members price at which they can be taken by them which is determined by directors and within the time period they can be taken.
Step3: If no existing members take up than transfer to outsider.
4. Also refer section 111 power to refuse registration and apeal against refusal
Warm regards
| Originally posted by : SAMAR JEET SINGH | ||
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Hi, 1. Section 3(1)(iii)(a) of the co. act 1956 provides that private company by its article should restrict the right to transfer its shares. 2. Generally the article of the company provides detailed provisions for transfer of shares. 3 In your case you can take following steps: step1: Director give notice in writing Step2: Co. in turn will notify to its members price at which they can be taken by them which is determined by directors and within the time period they can be taken. Step3: If no existing members take up than transfer to outsider. 4. Also refer section 111 power to refuse registration and apeal against refusal Warm regards |
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hi,
mine is a private ltd company. there are 2 directors including me. i have 60% share and my partner has 40% share. i want to increase my share. how to do it?
Options:
1. Purchase some shares from your partner as per provisions of your Articles. OR
2. Company can allot additional new shares to you as per provisions of your Articles.
| Originally posted by : P C Agrawal | ||
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OR can i issue all the 1000 shares to only one director (majority shareholder of 60%) so that the original proportion is altered? and
does the majority shareholder(60%) have the authority to issue shares on his own or should he take consent from the other shareholder? what if the other share holder does not agree? |
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For issue of shares by a private company only approval of Board is required. Subject to provisions in the Articles, consent of shareholders is not required. Further, subject to the provisions in the Articles, all the new shares can be allotted to one shareholder also. It is not necessary to allot to existing shareholders in same ratio.
| Originally posted by : P C Agrawal | ||
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Approval of the board - means - more than 50% is enough or 100% is required?
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It requires simple majority (more than 50%).
I was incorporate a new comapny and there is 4 directors at the time of comapny and all are hold 25% share capital of the comapny.
now we want to add two more directors in the company and they both are also contribute some part of the capital.
please suggest me how to change sahreholding pattern between old and new shareholder.
I was incorporate a new comapny and there is 4 directors at the time of comapny and all are hold 25% share capital of the comapny.
now we want to add two more directors in the company and they both are also contribute some part of the capital.
please suggest me how to change sahreholding pattern between old and new shareholder.
CAclubindia
