Removing a shareholder who is not paying the share capital

Pvt ltd 857 views 2 replies

The company X has 2 shareholder with A and B. A has 60% of shares and B has 40% shares. Now B is not taking any interest in company after few days of incorporation and not paying his part of share capital. A has fully subscribed his part of 60% shares and running the company. There is another person C who is only the director in company without any shareholding. 

The issue is that B is neither taking any interest in company nor responding any mails and nor receiving the phone calls of A & C. Company has sent him a notice with a time period of 21 days to pay the share capital fully but he has not responded and neither he is resigning nor responding any communications.

What are the way to remove him from company and assign his part of shares to C. There is documentary evidence (as emails and registered letters) to prove that he is not responding and not taking any interest in company.

Thanks for your help!

Replies (2)

You ahve commented B has not contributed towards his equity. So how he is a "shareholder" ? His name has not been entered in Register of members.

The question of resignation does not arise as there is no resignation of shareholder. No removal too. perhaps he was a subscriber to MOA and AOA at incorporation.

Is it not so ?

Invite share application money from C and allot equity shares to him.

But the question is what woudl be the stand of ROC where a subscriber has agreed to do so at incorporation but later on turns around.

Regards,

B's name is at MOA & AOA after that he has not subscribed his equity so transfer of shares I suppose is not required from his side. So can we directly allot shares of B to C? And is it legal?


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