Hello,
In a Pvt. Ltd., company held by family members with a share capital for 4 lacs and 4 directors with a subscriptttion of Rs. 1,00,000 each/- (1000 shares of Rs. 100 each), if 2 directors resign, my questions are:
1. If the directors are willing to transfer the shares to the other 2 directors does there have to be a physical transaction of money (through bank) to release the outgoing directors?
2. If the company does not have the necessary funds to payup the outgoing directors can it do just a book entry of share transfer?
3. What is the procedure for resignation of directors and is the company liable to pay the resigning directors their share capital value after transfer of shares?
4. Is there a way to transfer the shares without paying out the resigning directors?
5. If a book entry can be done in the Accounts for the transfer of shares, how can the resigning director do the same director in his respective company?
CAclubindia
