Company A is a pvt ltd company and has four shareholders - W, X, Y and Z
W holds 65%
X holds - 23%
Y holds 6 %
Z holds 6 %
The articles of association mention that article 81 must be followed (although article 81 itself is not applicable to pvt. ltd. companies).
X decided to issue new shares and allotted these shares only to himself and to Y and Z without offering them to W who holds 23 %.
There was no general meeting called..there was no special resolution passed. Can Y oppose this ?
We know it is easy to manipulate the AGM minutes and backdate this but what can Y do to protect his rights without having his shareholding diluted ? As total of W plus Y plus Z is 77% which is more than 75 %, how can X prevent abuse.
Can X challenge actions of W, Y and Z with pvt Company Law Board ?
Regards,
Bhushan
