Originally posted by : hetal shah |
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Dear All,
Person want to incorporate a COmpany where he will contribute 51 % of the capital and other party will contribute 49%.
Person contributing 51% does not want to be held accountable for any non-compliances or violation under any acts applicable in our country. What is an appropriate way to float such COmpany?
Can we have any agreement or any such Clauses in AOA?
Thanks |
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Hi Hetal
In my opinion, the person is only a shareholder want to hold majority of stake in the company. He is not a Director ( I assume).
Directors are accountable for any non-compliances or violations as they run the company (management). The person is only a
shareholder and in my opinion is not subject to any compliances unless he is acting as Director or as such.
Having largest share can entitle him to have name of the company with his name or with any initials as per the request as such
of the person. & I assume this is a pvt ltd company
regards
Santosh Shah.