Advocate Vivek Pathak

Questions Answered by Advocate Vivek Pathak

Q: What is the procedure to start up a company

I want to start my own work, by opening a company which will give some services to public, like as food,plumber,car etc on order. I want everything in legal way,so tha no problem would occer in future. but i dont know how to open the company.what is the procedure for it. and whether i need to open a pvt ltd. or public ltd. and what does it mean. and whether i would be supported by START UP INDIA or not. please guide me. 

Advocate Vivek Pathak answered
Yes, there is a proper procedure to incorporate a company which is not very cumbersome and the entire process ( from obtaining DIN to incorporation) may take total time span of around two weeks. Intially it's advisable, considering your business, to open a private limited company which requires atleast 2 members and capital of Rs 1 lakh. Once the business grow then it may be converted into a public limited company (public limited companies are subject to more regulation and compliances as compared to private limited companies)As far as getting support from start up India initiative, it's better to discuss things in more detail to evaluate the possibility of getting start up India support.

Q: Dispute between directors of a Pvt. Ltd. Company and blackmailing

I am he largest minority shareholder in a pvt. ltd. company. Other two have now ganged up against me. In our bank accounts either mine or SH A's signatures are admissible. However, the chequebook is with SH A and he refuses to pass board resolution of mandatory joint signature. He is withdrawing funds in arbitrary (difficult to prove illegal) fashion. Now refuses to sign cheques for utilities payments without which business will stop & I being biggest SH have most to lose. So they are blackmailing me to give them more. I want bank to takeover A/C & only clear cheques against genuine bills.

Advocate Vivek Pathak answered
file petition under 397/398 in CLB, if you are a minority shareholder, if not call for EGM/AGM and pass the resolution recording change in the authorised signatory and intimate the bank. further, provide exact shareholding details in order to enable me to provide proper advise.

Q: Investing personal funds into company

Hello, I have incorporated a company with Rs. 1 lac authorised capital. I have also opened a bank account by transferring Rs. 1 lac from the directors (in the ratio of their equity holding in the company). My question is that now if I want to put money into the company to meet expenses, what is the best option? 1. Should I transfer from my personal account to the company account and show it as a loan to the company? 2. Should I transfer more money from the directors' accounts to the company accounts and show it as equity? What are the pros and cons for both of the above? Thanks

Advocate Vivek Pathak answered
Lending money to the company will fetch you an assured interest while contributing money in the share capital will entitle you to proportionate profit of the company by way of dividend,hope that gives you a fair idea about funding. further for more clarification provide the existing structure of the company.

Q: Received notice for using goodwill of firm after dissolution

i do agreement with my other two partner in 6th october. that firm will be dissolve in 31st march 2016 with other partner will be caretaker. and afterwards no can use name, place and goodwill. but they took all firm asset so i change firm name. now they sent me notice that i use goodwill. but after 31st march i not use name and firm goodwill. please suggest me that i need to reponse of notice or not. and can i breach agreement??

Advocate Vivek Pathak answered
Reply to Legal Query ID 16997.I understand that you have a partnership firm which has to be dissolved on 31.03.2016 according to an agreement you entered with other partner in October 2015 wherein it was also agreed that none of the partners after dissolution will use the name of the firm , goodwill etc., However, the other partner continued using the goodwill of the firm. Prima facie it appears that the other partners are in breach of the terms of the Agreement they entered with you in October, 2015. We can also explore the option of suing them for breach of agreement and demand liquidated damages. Further if they are have already breached the agreement then in that scenario agreement has no effect and you are also free to pursue your interest.However to advise you the best course of action, I need to go through the Agreement. Thus request you to provide the copy of agreement.Warm Regards