Counsel
Ask an expert!
Legal, accounting and compliance advice from qualified professionals.
No, the majority shareholder cannot take the entire money without giving anything to the minority shareholder because the business is started by both the Directors and run by both of them so both of them have right to enjoy the fruit at the end also. In case of acquisition of the company, the acquirer company can acquire the acquiree after the consent...
Wazzeer Professional Network
ProfessionalWe are 2 Directors of a Pvt Ltd Company. We opened up the company with a Paid-up Capital of 100000 Rs and the share was split as 70:30 and the money were also pooled in accordingly from personal accounts in the company account. After that, the Director which has 70% of the share started investing money and the Director with minority share started running the business. Today after almost 1 Year and 9 months the company has got a proposal to be acquired. I want to check with you on the following Questions assuming the situation wherein the Company is getting acquired at 3 crores.
The total expense done by the company is around 50 lakhs out of which majority have been booked under 'Sale' let's say around 25 lakhs and rest has been invested by the director with a majority share. My questions are 1. By any means can the majority shareholder take the entire money without giving anything to the minority shareholder? 2. What are the precautionary steps which the minority shareholder should take in order to save any situation like this?
-
Wazzeer Professional Network
ProfessionalNo, the majority shareholder cannot take the entire money without giving anything to the minority shareholder because the business is started by both the Directors and run by both of them so both of them have right to enjoy the fruit at the end also. In case of acquisition of the company, the acquirer company can acquire the acquiree after the consent of all the directors and there is always a pre-acquisition agreement under which the acquirer company mentions the amount they will give to the shareholders of the acquiree in the ratio agreed by them. In case any of the shareholders are not satisfied with the deal or the payout to him he can deny signing the agreement.
We at Wazzeer can help you in any legal or accounting matters, so without a due 'Get your Wazzeer'
about 5 years ago
View answer
We are 2 Directors of a Pvt Ltd Company. We opened up the company with a Paid-up Capital of 100000 Rs and the share was split as 70:30 and the money were also pooled in accordingly from personal accounts in the company account. After that, the Director which has 70% of the share started investing money and the Director with minority share started running the business. Today after almost 1 Year and 9 months the company has got a proposal to be acquired. I want to check with you on the following Questions assuming the situation wherein the Company is getting acquired at 3 crores.
The total expense done by the company is around 50 lakhs out of which majority have been booked under 'Sale' let's say around 25 lakhs and rest has been invested by the director with a majority share. My questions are 1. By any means can the majority shareholder take the entire money without giving anything to the minority shareholder? 2. What are the precautionary steps which the minority shareholder should take in order to save any situation like this?
-
Wazzeer Professional Network
ProfessionalNo, the majority shareholder cannot take the entire money without giving anything to the minority shareholder because the business is started by both the Directors and run by both of them so both of them have right to enjoy the fruit at the end also. In case of acquisition of the company, the acquirer company can acquire the acquiree after the consent of all the directors and there is always a pre-acquisition agreement under which the acquirer company mentions the amount they will give to the shareholders of the acquiree in the ratio agreed by them. In case any of the shareholders are not satisfied with the deal or the payout to him he can deny signing the agreement.
We at Wazzeer can help you in any legal or accounting matters, so without a due 'Get your Wazzeer'
about 5 years ago
Looking to hire a professional from our handpicked community?
Explore our services, submit your request and let us do the rest for you.