My company has three directors, but one director with 24% shares hasn’t been active for nine months and has been involved in conflicts of interest. We want to remove him and regain his shares. We have a majority stake (76%), but we’re unsure how to proceed with getting his shares back. What steps should we take to remove him as a director and recover the equity?

Apni Law
Apni Law
Law Forum › Category: Corporate › My company has three directors, but one director with 24% shares hasn’t been active for nine months and has been involved in conflicts of interest. We want to remove him and regain his shares. We have a majority stake (76%), but we’re unsure how to proceed with getting his shares back. What steps should we take to remove him as a director and recover the equity?
Vote Up
386
Vote Down
Apni Law Staff asked 2 years ago

My company has three directors, but one director with 24% shares hasn’t been active for nine months and has been involved in conflicts of interest. We want to remove him and regain his shares. We have a majority stake (76%), but we’re unsure how to proceed with getting his shares back. What steps should we take to remove him as a director and recover the equity?

1 Answers
Vote Up
39
Vote Down

Best Answer

Apni Law Staff answered 2 years ago

You can remove the director through a board resolution supported by the majority shareholder (76%). However, recovering his shares requires a separate process, likely involving a buyback agreement or legal action, depending on the company’s articles of association and shareholder agreement. Consulting a legal professional is recommended for tailored advice.

You Might Also Like

Is it possible to combine a performance-based bonus with the regular statutory bonus offered by Indian companies?

Thinking of starting a chit fund business in Rajasthan? I’m looking for advice on how to set up a monthly installment and draw system. Any suggestions?

Thinking of starting an online platform for selling organic fruits, vegetables, and other produce? We want to set up a trust for this, where a small portion of the customer’s payment goes towards maintaining the site. Would this type of public trust be exempt from service tax and VAT in India?

My friend and I started a software firm three years ago, splitting the ownership equally. We’ve built several products, one of which, [website name], is gaining popularity. Everything was managed informally, except for the initial legal paperwork. Now, my partner wants to set up a new company and take [website name] with them without offering me anything. 1. What legal protection do I have under Indian law in this situation? 2. If I file a case, what would happen to [website name]?

How do the roles of an Executive Director and a Non-Executive Director differ in an Indian company? What factors determine if a director is appointed as an Executive Director?

Share This Article
Previous Article Dear Sir, My wife and I are both government employees – I work in the Railways and she is a teacher in Karnataka. We applied for a transfer together, prioritizing government policies, but our application was unfortunately not considered. Could you please advise on how we can appeal this decision to the education department? Thank you for your time and assistance.
Next Article My husband and I are Hindu. We own a house that’s registered in my father-in-law’s name, but the money for it came from my husband. Now we’re selling it – how much of the sale proceeds can we rightfully claim?

Follow US

Find US on Social Medias
Popular News
- Advertisement -
- Advertisement -
Ad imageAd image

📢 Stay Connected!

Join our community on Telegram and WhatsApp for instant updates, news, and exclusive offers.