Non issuance of share certificates
seenu
(Querist) 15 July 2018
This query is : Resolved
Hi,
In 1998 a company has been formed for construction of shops to create trade centre,it is a private limited company it collected around Rs 1 crore from public by issuing share application money form, each member paid Rs 35000 for a share, company bought 30 acres of land for construction of shops with that money ,each member are entitled to receive 1000 sqft land and 10 share each but till today they didn't provide share certificates for share holders, I bought two shares for Rs 70000 ,they volunterily take decision of company without share holders consent,they don't conduct general meeting and few people Who became share holders at incorporation of company select director of company, again in 2008 they issued share application money and collected around Rs 3 crores from new members each paid Rs 35000 for a share,each member are entitled to receive 1000 sqft land and 10 share. I questioned them how they issued new shares for Rs 35000 as the land price is increased substantially from 1998 and they didn't get permission from existing shareholders who bought at 1998 ,they said you don't have rights to question us as you don't have share certificates they deliberately not issued share certificates to deny us shares holders rights and done many wrong doings so I filed a complaint against director of company at police station but they are refused to file Fir against them citing they will provide share certificates within 3 months from now , so I request you to suggest under what Ipc section they can be booked ,Is this come under criminal breach of trust?
Regards,
Seenu
Note : Till today they haven't started the project.
Guest
(Expert) 15 July 2018
Information is quite insufficient to arrive at some purposeful opinion. So, please clarify--
1) What is the name of the company?
2) Whether the Company is Registered with the Registrar of the Companies or not?
3) If a registered company, what is its Registration No.
4) Who are the Directors of the Companies with their DIN, as an 8-digit unique identification number
5) How they approached you for selling their shares?
6) Do you have copy of any publicity of the company to call for applications for issue of shares and promise to allot land?
7) What was the mode of payment, whether by cheque, demand draft or cash to the company?
8) Do you have any valid receipt issued by the company for the money paid by you?
9) Whether you have their written response to your objection that you do not have any right to question on having no share certificates?
10) What action the police has taken on your FIR against the company or the Directors?
Dr J C Vashista
(Expert) 17 July 2018
Submit your response to the questions (which are quite relevant) raised by expert Mr. PS Dhingra, I agree.
It would be advisable to consult a local lawyer showing all documents and explaining entire facts for proper appreciation and analyses.
