Share sale in a Provate Co

Subrahmanyam (Querist) 31 March 2010 This query is : Resolved
If one of the share holders wants to move on, how is the settlement done, if the company is running in losses. Can he expect to get back capital contributed by him..

if no what is the procedure involved..?

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A V Vishal (Expert) 31 March 2010
Since the company in question is a private limited company you cannot sell the shares in the secondary market and the same can be bought back by the company or any private shareholders of the company. Since the company is in losses you cannot recover the capital invested in it.

Raj Kumar Makkad (Expert) 31 March 2010
Nothing to add in the opinion of vishal.

Subrahmanyam (Querist) 01 April 2010
Then how the valuation is to be arrived for the company to buy-back the shares and if the share-holder is not satisfied with the valuation any resourse to him..?

Kumar Thadhani (Expert) 05 April 2010
The valuation in respect of the shares of buy back are decided by the amalgamation or sale of that company who proceeds to buy the company. The shareholder have no recourse or option left to them.

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