Changing Status of Shareholders

Co Act 2013 221 views 2 replies

kings22

Shareholder

167 Points Joined March 2019

We are a family owned Private Limited company with 99.96% shareholding (3 Shareholders combined 9996 shares). There are 2 other shareholders owning 2 shares each (Total 4 shares). I am trying to simplify the company working

- How do I remove these two shareholders with 4 shares? They don't want to sell these shares. What are our options in the act to take these 4 shares back from them?

- How do we change these 4 shares to non-voting class of shares? Is there any option in the act to do that?

Any guidance is appreciated on our options.

Replies (2)

pritesh

delhi

720 Points Joined February 2011

Shareholders cannot be removed nor you can change the voting right.

kings22

Shareholder

167 Points Joined March 2019

Thanks Pritesh ji. Essentially if my family owns 99.96% of shares and we have 2 outsiders with 2 shares, we would need to keep complete transparency with them no matter what for everything including inviting them for AGM etc....Is there anyway in the act to prevent this interference ? I am trying to buy the shares which really have insignificant value but the shareholders want to hold them for no logical reasons

Any ideas on what can be done?