Minority Shareholders' Rights in Pvt. Ltd. Co.
Dinesh Malik
(Querist) 29 July 2010
This query is : Resolved
A PVT.LTD. CO. HAS TWO SHAREHOLDERS A (FATHER) & B (SON)HAVING 100% SHAREHOLDING OF THE COMPANY. THEY ARE ALSO DIRECTORS OF THE COMPANY. THEY DECIDED TO TRANSFER 2% SHAREHOLDING OF COMPANY TO C & D (OUTSIDERS).
NOW CAN C & D DO ANYTHING AGAINST THE INTEREST OF A & B AND COMPANY UNDER THE PROVISIONS OF COMPANIES ACT WITHOUT CONSENT OF A& B. (e.g. CAN THEY TRANSFER PROPERTY OF COMPANY OR DO ANYTHING ELSE WITHOUT CONSENT OF A & B ?)
PLZ. ADVICE.
s.subramanian
(Expert) 29 July 2010
no. they canot. but they can proceed for oppression and mismanagement under sec.397 of indian companies act.