Share transfer in private company

Buddy,

This is quite a complex situation but there is also solution for it.

First of all the Shareholders are the "actual" owners of the company and a Director does not have any right to refuse a share transfer.

In your case you better call the members of 30% share for a meeting with the management. If the person still refuses, then go ahead with a petition filed with Company Law Board (CLB).

See to that you hire a professional lawyer who can technically & tacfully handle the case as you have mentioned there is no agreement or paper work during the time of deposit.

Please Note:

1) There is one more way to get back the money. Do you have any transaction evidence such as: Cheque, Pay in Slip, Demand Draft??? As any sought of financial transaction to or within the company has to be done with a financial instrument.

If you have any such evidence you can, for sure, get back your money.

2) For the past 5-6 years the financial report says that the sum of Rs.2,00,000/- is in application money status. In that case, it should hold the concerned person name and should have the reason to hold.

3) You can place this in the CLB and get the money back.

4) BUT FOR GOD SAKE DO NOT LOOSE TEMPER AND FIGHT. IT WOULD BECOME THE STRONG SUPPORT FOR THE OPPONENT.

With Prayers

Shankar

Thank you Sir,

The concern is not to get the money back, the concern is to obatin the shares so the percentage of holding increases.

Further I just wanted to know whether there is any such provision for a private compnay in company's act. I feel there is no such provision and the decision of the majority share holder, that is his uncle will prevail.

Regards

Buddy,

Even then the application money cannot be keep in the company. Share certificate has to be issued or must be returned, if not allotted.

Possession of the money is an offence. Whereas it is termed as third party money. If you approach the CLB, then the court would order to refund the same and to my knowledge with interest too.

Even if you appeal for shares then you have to get the refund and apply for fresh shares because it is already 5 to 6 years gone.

dear apurva,

                 you can very well approach sebi for getting a refundof your application money since its not been alloted even after getting accepted. sebi has laid down several rules regarding refund of application money to the sahreholders in case of non allotment. that company might be in big trouble if you take right course of action by approaching sebi or clb.

regards

tanveer md masood

sec.15 d provides that failure to refund application money would entail a fine of 1 crore or 1 lakh which  ever is higher.

Originally posted by : Tanveer Md Masood
	dear apurva,                  you can very well approach sebi for getting a refundof your application money since its not been alloted even after getting accepted. sebi has laid down several rules regarding refund of application money to the sahreholders in case of non allotment. that company might be in big trouble if you take right course of action by approaching sebi or clb.   regards tanveer md masood

The rules laid down by SEBI is applicable to all listed companies and unlisted public company. It is silent for Private Company.

Dear Ms. sneha Binani,

                                          Rules laid down by sebi is applicable to both listed and unlisted companies, private as well as public companies. The most glaring example of SEBI's clout is the spat with sahara over refund of investors money who had put their stake in the ofcd that was ordered by sebi to be refunded. Hope you do more practical research and come out of tution notes and study material and try to become more of a professional corporate .

Regards

Tanveer Md Masood.

Originally posted by : Tanveer Md Masood
	Dear Ms. sneha Binani,                                           Rules laid down by sebi is applicable to both listed and unlisted companies, private as well as public companies. The most glaring example of SEBI's clout is the spat with sahara over refund of investors money who had put their stake in the ofcd that was ordered by sebi to be refunded. Hope you do more practical research and come out of tution notes and study material and try to become more of a professional corporate .   Regards Tanveer Md Masood.

Kindly go through the circulars issued and interpret it before commenting. Please read the attached article and increase your knowledge. 

/forum/major-amendment-regarding-share-application-money-180694.asp

Originally posted by : Tanveer Md Masood
	Dear Ms. sneha Binani,                                           Rules laid down by sebi is applicable to both listed and unlisted companies, private as well as public companies.

Rules laid down by sebi are not applicable to unlisted private as well as public companies.

Tx

The company's shareholder can go for CLB. As it's minority oppression.

I agree with Shankar's views completely.