Hi,
Please help me regarding the Query about Increasing paid up capital.
I have 36% stake in a company whose authorised capital is 10 lakhs which is fully paid up.
My query is can the majority stake holder without my permission increase authorised share capital and then allot all the shares to himself or his associates and making the capital fully paid up, so as to dilute my stake to a negligible extent.
Does this act of his require just an ordinary resolution or a special resolution which requires 75% share holders approval.
Is there any other way, where the 64% stake holder can cheat us and dilute our stake to negligible level.
Thankx and regards.
CAclubindia
