Minority shareholder wishes to divest
Querist :
Anonymous
(Querist) 13 May 2011
This query is : Resolved
I have been instrumental in gaining a distribution and lately a lucrative repacking agreement for a US based company for their products in India. I hold40% in a pvt limited company formed for this exclusive purpose. When I proposed that I should be paid a salary and sweat equity as 100% of the idea and work is being done by me-the 60% shareholders refused. At this juncture I offered to sell my stake to them about 45 days ago but they have not responded.Moreover though I was prepared to invest to get 60% in the begining, I was denied that as they said 20% was being held in benami for a gentleman who actually helped us get the deal with the US company but which was denied by this person when I contact him to resolve this issue. As these lies have made me apprehensive about their intentions I do not wish to continue as a shareholder. What are my options? Winding up petition? Pre Litigation Complaint? I am prepared to lose my share of the investment but I do not want to continue as a director or shareholder. Any advice will be deeply appreciated.
Manish Singh
(Expert) 31 May 2011
You must go through the AOA of the company. Restriction on transfer of shares must be incorporated therein.
Act accordingly. If it says that after .....days of offering the share to the existing members, you are free to sell off the shares to any other person.
You can resign from the directorship at present also.
