Background:
A company wanted to raise funds and they collected money mostly from NRI's during late 2009. In 2010 they incorporated as an unlisted company and issued equity shares and preference shares propotionately to these NRI's. Initially they were around 40% share holders. Now it has become only less than 20% as the company every year is issuing private placements. Due to this these 20% share holders in the company has no say in general meetings. In this situation
1) Can the company every year issue private placements without checking with existing shareholders (rights issues).
2) When private placements are offered, does the shares of existing share holders reduce?
3) Can share holders inspect company documents like accounts statements, MPB 1 forms etc?
4) How can Minority Share holders rights can be protected ?
Thank you in advance.
CAclubindia
