Rights of 60% shareholders

Pvt ltd 709 views 1 replies

In a Pvt. Ltd. company having 4 shareholders, 2 with 40% shares and other 2 with 60% shares, what is the power with 60% holders in case of dispute. I have some questions:

1) Can the 60% holders remove the other 2 persons as directors (all the shareholders are directors) and appoint new directors and decide on their salaries?

2) Can the 60% holders repay their own loans given to the company and decide their own remuneration (as directors)?

3) Can the 60% holders issues fresh shares and increase their shareholding ratio?

4) Can the 60% holders get bank loans and invest in machinery?

5) Would the 40% holders be liable for the losses in the company even if they were not directors?


Thanks

Replies (1)

Since there are only four members and the difference between the two groups is not wide, the aggreived group can always fight out in the CLB. The answer to all the above questions would remain the same.


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