varun 11 December 2015

Share value or asset value of a private limited company

the private limited company has 3 share holders A with 50 percent B with 25 C with 25...there is a dispute between C and AB....now C is ready to relieve from the company ......he is asking his settlement ......question is

wheather AB is given his shares depends on the share value of a company or the total assets value of a company....

the share value is less...when comparing to the original assests value of a company

if C is goes to company law board how its setteled depends on share value or assets value?

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2 Replies

Adv. Yogen Kakade (+ 91 9225510883) 11 December 2015

Hi,

While relieving a partner in a company there are so many aspects to be taken into consideration.

His contribution, share holding, company assets, goodwill, profit/loss etc.

You might have executed an agreement while forming the company.. refer the relieving / terminating a partner clause for the same. Currently you can do the calculations as per the terms decided or decide the terms mutually.

Adv. Yogen Kakade

Jurycon Incorporation

Advocates & Consultants

020-65248888
Email: juryconincorporation@gmail.com
Web: www.juryconn.in

Dr Katta Venkata Rama Krishna (Retd Sr Director Govt of India/ Advocate) 14 December 2015

To initiate the share transfer procedure, the following steps must be followed:

Step 1: Review the AOA: Articles of Association of the Private Limited Company must be reviewed and restrictions, if any must be addressed.
Step 2: Shareholder must give notice in writing to the Director of the Company about intention to transfer share of the company.
Step 3: Determine the price as per Articles of Association at which the shares of the Company will first be offered to present shareholders of the Company. (Usually this price is determined by the Directors of the Company or an Auditor of the Company.)
Step 4: The company must then give notice to the other shareholders about the availability of share, the last date to purchase the shares and the price at which the share are available.

If any of the present shareholders come forward for the purchase of shares, such shares must be allotted to them. In case no present shareholder is interested or excess shares are available, the same can be transferred to the outsider.