Go AD-Free with CAclubindia PRO for Rs 167/Month Only. Subscribe Now!

Director

Pvt ltd 595 views 2 replies

Anonymus

25 Points Joined August 2013

Hi,

I am in the process of entering into a partnership for a business model. Forgive my ignorance with company laws as I would be asking couple of question from a layman's point of view.

There are going to be 3 directors in the company and the proposed shareholding is going to be 70:20:10.

My question relates to the decision making authority among the directors.

Is the decision making authority proportional to the shareholding pattern. Can the person with the 70% shareholding take decision without concurring with the remaining directors?

Thanks.

Replies (2)

Vandana J Doshi

Practising Company Secretary

12562 Points Joined May 2011

As per my thinking, any decision of the Company are to be taken by majority of directors and in some cases all the Directors. It is not concerned with shareholding...but in case of general meetings, the shareholding pattern may effect..

But answer my question...is it a private company or a public limited company...