Company Law

A and B started a company, wherein A held 40% shares and B 60%. Baith were directors.

A deposited Rs. 30Lakhs in the company account using which assets were acquired by the company. B, on het other hand, didn't deposit any money in the company account.

In case of windup of the company, can A stake a claim on company assets? If yes how?

Replies (4)
Quick Summary
This discussion explores a company law scenario where one shareholder, A, contributed significantly to company assets via a loan, while the other, B, contributed nothing. It questions whether A can claim company assets upon wind-up, considering share capital composition, loan terms, and director responsibilities. The advice touches upon relevant company law sections and the importance of proper capital subscription and filing for commencing business.

What is the equity capital composition in the Company? are the shares of a & b fully paid up ?

The authorized capital is 60lakhs.

A has paid Rs. 30 lakhs (5 lakhs towards capital and 25lakhs towards loan to the company) which was used to acquire assets for the company.

B haven't paid any capital yet.

The company was incorporated in March 2017

 

I think the very first, this scenario will attract the provisions of section 10A.
As far as your question is concerned whether A can stake claim on the assets of the company, it depends on the terms of the contract of the debt which he gave to company i.e. whether it is secured and even whether there is any other creditor.
You can understand all this by correlating it further with very famous case of "SALOMON”.
But after all that certainly would be upto the portion of Debt only.
This will further attract the provisions of section 106.

Finally i would say the question seems incomplete.
The Law Requires Board of Directors to Collect the Subscribed Capital from the Shareholder after incorporation.. One the Board of director has collected the Share Capital than they have to file a MBP 1 to registrar confirming that Members have paid the Share Capital and than only the Company can commence business.

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