Hello,
My client is a Private limited company. Incorporated with 3 share holders with 34%, 33%, 33% each and all 3 were appointed as directors. Then after 2 months 2 additional independent directors were appointed. After a year of operations the company is yet to make revenue because of some conflict the share holder with 33% holding and one of the independent director resigned from the board. Now the company has 3 directors out of which one is an independent director and other 2 are shareholders and directors.
Now the authorised capital of the company is 1 lac and now for expansion wants to increase to Rs.25 lacs. The board has approved the same and In the AGM the shareholder who has left directorship due to conflicts keeps stopping withour valid reason. Since increase in capital requires special resolution, 75% quorum is not happening.
What is the way forward? Is I do not have money or i do not want to put money can it stop the growth of a company?
CAclubindia
