Director tying to withdraw his share what to do.
06-Dec-2023 (In Corporate Law)
We have started a company 1 year back. In this company 2 directors are there one is NRI(74% share) and another one is Local (26% share). Local director is withdrawing money with out permission of the NRI director. NRI director has invest all the expense for this company.
Dear Sirs,
This can be done after offering the shares to existing shareholder or the directors holding share. We need to review the Articles of associations. Notice to transfer, share transfer deed and other formalities have to be followed.
Regards
Sadanand
This can be done after offering the shares to existing shareholder or the directors holding share. We need to review the Articles of associations. Notice to transfer, share transfer deed and other formalities have to be followed.
Regards
Sadanand
The query is not very clear... what is the purpose of withdrawal? You can restrain a partner/ director from withdrawing funds as per his whims and fancy by putting the option of a resolution which would require the assent of the other director.
The memorandum of association and articles of association (formation of company documents) will list the rights of the Directors. In that if the Director is empowered to withdraw money and use it for the purpose of business, then he is allowed to do so. If not, then you can take action against him. If he is permitted to withdraw, but he is using it for personal transactions, then also you can take an action.
As per your query, The company will have registered and agreement will be executed according to By Law sharing profit,Loss,and Investment etc. For your information, who will have more than 50% share(NRI Director) will have more powers kindly consider better corporate Advocate. Thank you
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