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Company........

26 December 2019

a person wants to create a company and he is investing all shares nd 2 persons are experienced holder and they will run the business of company. nd the investment holder says u run the company and all profit will be divided among 3.... plzz tell me it can be or not ? because company needs share holders but one is investing all shares and two others are runing the business..and tell me that it is necessary to invest the shares of both persons to get equal profit?

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3 Replies

Chirag Agarwal (Student) (25 Points)
Replied 26 December 2019

The company cannot give dividend to both the two persons as dividend is entitled to only those who are shareholders of the company. However, both the two persons can act as active person to the company in the capacity of employee of the company for consideration of some remuneration as decided amongst. But the formation of such a company is only possible in case of OPC only.