Company with only 2 directors

Dear All

1) A company was formed with only 2 directors husband and wife with 1500 shares on total

Husband 800 shares

Wife 200 shares

Remaining 500 shares laying idle

Is is correct this way ? Has the company been incorporated correctly ? Is there any legal  loophole waiting to be exploited?

2) SInce there are only 2 directors would the husband be automatically considered as managing director since he holds 800 shares?

Shanthi

Replies (5)

Dear Ms. Shanthi

 

In case of private company following is required:

1. Authorised Capital should be minimum one lakh and also paidup capital should not be less than one lakh.

2. Minimum two director is required for private company.

 

In case of your first question, i think  u comply the minimum requirement of private company.  

 

In second question, a director can not autometically considered as managing director, you are required to appoint as MD in accordance with the provisions of companies Act, 1956.

 

Best Regard

Thanks Sir for the answer

helloo Ajay sir,

SIr i dont think that there is any minimum requirement regarding paid up capital should be at least 1lac

please rectify me if iam wrng

Dear Mr. Mayank

 

If the share price of the mention shares is Rs. 100 each (as the share price is not mention in the earlier question) then the paid-up capital of such company will be Rs. 1,00,000 which comply the minimum requirement  of capital clause to form a private company.

 

 

Regards 

 

 

Sir I was confirmed about the Authorized capital but not for paid up capital

thank you sir

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