Hi,
I own 51% stakes to a private Ltd Co. & other director owns 49% stakes. Unfortunately the other director hardly takes interest in the day to day operations & seems to be least interested. I would like to know my rights against the minority share holder, 1. Whether I can buy back shares from him without his consent. 2. Whether I can transfer his shares to an interested investor at the said share value.
Also let me know if there are any additional rights excluding the above queries.
Thanks.
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Rights of 51% stakeholder in a pvt ltd co.
Replies (5)
you cant transfer his shares unless he is willing to do so.
another option is that you can make him resign from the post of director and appoint another person. he will continue to hold shares allotted to him but he will have no power to take decisions for the business.
another option is that you can make him resign from the post of director and appoint another person. he will continue to hold shares allotted to him but he will have no power to take decisions for the business.
Is there any way of buying back specific no. of shares ? One company is interested in investing into our company & they require roughly around 5-15% of shares. Can I ask the other shareholder to dilute his shares so that I can maintain 51% stakes into the company ?
if the other director is willing to dilute his holding for that percentage then why would your co. buy back these shares, ask him to sell the shares to another co. for a consideration. subsequently your co. will make necessary changes in "Register of Members".
Just looking out for all the possible options to remain on the safe side.
i will get back to you on prov. regarding buyback, currently i cant recall the same.
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