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Director cannot remove another director. Only Shareholders can remove Director.
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There is no time period provided under the CA, 2013 for payment of subscription money by the subscribers to the Company. Therefore, we can say that it is not mandatory to pay share subscription money immediately o...
Wazzeer Professional Network
ProfessionalWe formed a private limited company with Authorized capital INR 1 L and paid up capital INR 1 L, but one of the director has not invested to start the company and all the burden lies on the second person. However, the person promised that he will pay and has been prolonging ever since. Now the two people are directors with equal responsibilities and have equal shares. The issue is:
The share certificates are not signed by the defaulter. It has been more than 2 years now that the default director has not paid, nor signed the share certificates nor he is willing to transfer the shares to someone willing to take up nor he is paying up the initial capital to start the business, now that the complete company has been formed and he is yet to pay up for the capital the following questions arise. 1. Can one director of two take out the other director from the company and as a shareholder. If yes, how could he do it. 2. How do we deal with defaulters in paying the upfront capital to start the company. 3. How do we deal if the defaulter is misusing by purchasing any materials with the company TIN via interstate to avail the 2% CST benefit instead of 14.5% VAT. 4. Even if we manage to take him out as a director, how do we deal with removing him as a shareholder.
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Wazzeer Professional Network
Professional-
Director cannot remove another director. Only Shareholders can remove Director.
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There is no time period provided under the CA, 2013 for payment of subscription money by the subscribers to the Company. Therefore, we can say that it is not mandatory to pay share subscription money immediately on the incorporation of Company. Subscription of MOA by the subscriber is a contract b/w the subscriber and the Company. In which Company will issue shares certificates to the subscriber and in consideration of the same subscriber will make payment to the Company. If company issued share certificates to the subscriber, company has performed its part. But consideration (money) not received from the subscriber then it will be considered as breach of Contract by the subscriber and will attract civil dispute for breach of contract.
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As per section 447 any fraud happens in the Company which is affecting the interest of the Company then he will be penalized according to the section.
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You have to maintain minimum criteria of 2 director and 2 shareholders so you have appoint one shareholder as well as Director so that compliance of private company can be maintained. Transfer his shares from him and he will be removed from the shareholder.
Entrepreneurs can always avoid such legal issues only under a reliable advisory in place. I think it is time you 'Get a Wazzeer' to experience the benefits.
over 3 years ago -
View answer
We formed a private limited company with Authorized capital INR 1 L and paid up capital INR 1 L, but one of the director has not invested to start the company and all the burden lies on the second person. However, the person promised that he will pay and has been prolonging ever since. Now the two people are directors with equal responsibilities and have equal shares. The issue is:
The share certificates are not signed by the defaulter. It has been more than 2 years now that the default director has not paid, nor signed the share certificates nor he is willing to transfer the shares to someone willing to take up nor he is paying up the initial capital to start the business, now that the complete company has been formed and he is yet to pay up for the capital the following questions arise. 1. Can one director of two take out the other director from the company and as a shareholder. If yes, how could he do it. 2. How do we deal with defaulters in paying the upfront capital to start the company. 3. How do we deal if the defaulter is misusing by purchasing any materials with the company TIN via interstate to avail the 2% CST benefit instead of 14.5% VAT. 4. Even if we manage to take him out as a director, how do we deal with removing him as a shareholder.
-
Wazzeer Professional Network
Professional-
Director cannot remove another director. Only Shareholders can remove Director.
-
There is no time period provided under the CA, 2013 for payment of subscription money by the subscribers to the Company. Therefore, we can say that it is not mandatory to pay share subscription money immediately on the incorporation of Company. Subscription of MOA by the subscriber is a contract b/w the subscriber and the Company. In which Company will issue shares certificates to the subscriber and in consideration of the same subscriber will make payment to the Company. If company issued share certificates to the subscriber, company has performed its part. But consideration (money) not received from the subscriber then it will be considered as breach of Contract by the subscriber and will attract civil dispute for breach of contract.
-
As per section 447 any fraud happens in the Company which is affecting the interest of the Company then he will be penalized according to the section.
-
You have to maintain minimum criteria of 2 director and 2 shareholders so you have appoint one shareholder as well as Director so that compliance of private company can be maintained. Transfer his shares from him and he will be removed from the shareholder.
Entrepreneurs can always avoid such legal issues only under a reliable advisory in place. I think it is time you 'Get a Wazzeer' to experience the benefits.
over 3 years ago -
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