Termination of shares of an private limited company

Others 308 views 1 replies

Hi Club, 

I have an interesting question.

I got associated with an ABC company around 2 years ago(Mar 2021) and allocated 2.5% of the shares when it was incorporated. I did not invest any money at that time. One of my partner invested 5cr in the company and no other partner invested.

Later on, after a year, Mar(2022), I bought 0.5% shares by buying it from a person who was leaving the company. I paid 3L to him at that time.

I have proper documents for 3% of the company and there is nothing else like termination clause or anything.

The partner who holds around 95% of the shares is threatening us now that he will terminate all the shares that I have and I will not have any shares left.

Can he do terminate my shares considering that he invested and majority share holder? Thank you.

Replies (1)

Legally, its an arms length transaction. You purchased them legally and entitled to settle it with consideration. Maybe he will give you back your money invested.  


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