Minor shares
RAJESH CHOUDHARY
(Querist) 27 June 2012
This query is : Resolved
We have a pvt ltd company with 5 directors, one of the directors has been found mentally instable and he owns 6% in the company, as this is not helping us to grow the company nor with the issues raising everday. company is in losses for the tune of approx 30 lakhs and we offered this share holder Rs.3lakhs to transfer the share but he is not willing to do that, this has become a issue for us as we are not able to grow this nor get investments. Can we increase our capital and dilute his shares or can we have a meeting and vote for his exit. Please advise the right way.
A V Vishal
(Expert) 27 June 2012
Removal of director is a separate issue and so is diluting the shares. The best option is to dilute the shares of the said director and remove him from the directorship, further you say he is mentally unstable, if so it becomes one of the grounds for disqualification as a director but not as a shareholder.
RAJESH CHOUDHARY
(Querist) 29 June 2012
Can we increase capital and dilute his share holding.??
