My family and I own a private limited company, with me holding 50% of the shares and a director position. We’re considering splitting the company into two equal parts. Is there a legal way to do this in India? If so, what are the steps involved?

Apni Law
Apni Law
Law Forum › Category: Corporate › My family and I own a private limited company, with me holding 50% of the shares and a director position. We’re considering splitting the company into two equal parts. Is there a legal way to do this in India? If so, what are the steps involved?
Vote Up
261
Vote Down
Apni Law Staff asked 1 year ago

My family and I own a private limited company, with me holding 50% of the shares and a director position. We’re considering splitting the company into two equal parts. Is there a legal way to do this in India? If so, what are the steps involved?

1 Answers
Vote Up
20
Vote Down

Best Answer

Apni Law Staff answered 1 year ago

Yes, there are legal ways to split a private limited company in India. This can be achieved through a scheme of arrangement under the Companies Act, 2013. The process involves drafting a scheme, obtaining shareholder and court approval, and ultimately registering the new entities.

You Might Also Like

I joined a company as a manager, got promoted to business head, and now I see I’m listed as a director. I never agreed to this role and haven’t received any compensation for the past two years. I want to resign as director and understand my legal obligations. How can I ensure my name is removed from the shareholder list and what steps should I take to distance myself from the company?

A contractor working on a project for a client in India mistakenly billed for an extra expense they weren’t entitled to. The consultant overseeing the project overlooked this error. The client later discovered the mistake and deducted the excess amount from the next payment. They also charged interest at the prevailing Prime Lending Rate (PLR) on the overpayment. The contractor now wants the excess payment recovered, claims the interest shouldn’t be charged, and requests interest on the recovered amount at the market rate. The client argues the contractor intentionally inflated the bill and should view the excess payment as an advance, with the minimum possible interest at the PLR. What’s the fairest resolution to this situation?

We’re a small educational business, two friends running it as a Pvt Ltd company since 2011. We’ve taken a franchise but haven’t seen any profit, just losses. We’re struggling to pay service tax and TDS, and the landlord is running the business now. Our partner’s hesitant about closing, leading to a deadlock. We’re in a tough spot, with penalty fees from the franchiser looming if we close. What are our options? Can I leave, sell my shares (60% mine, 40% his), or is there another way out of this mess?

I’m planning to start a lottery business in India. Is this legal? If so, what are the steps involved in setting it up?

I’m starting a website called bikeduck.com and planning a fun bike rally in Bangalore. We’re not a registered company yet, just a group of passionate cyclists. Do we need any special legal steps before asking businesses for sponsorship?

Share This Article
Previous Article My father passed away a few years ago. After his death, my stepmother and her friend (now a prominent leader) pressured my sister and me into signing documents that transferred 3 acres of our family land to them in August 2010. They claimed it was to settle a debt my father owed them. Then, in August 2015, my stepmother registered another 2.5 acres in her friend’s name and 2.5 acres in her daughter’s name, this time without our consent. This transfer included 60 cents of land registered under my name, while the rest belonged to my grandparents.
Next Article My grandfather passed away, leaving a will that divided his property between his two sons and daughter. My aunt, his unmarried daughter, inherited a portion of the property. The will states that upon her passing, part of the property should go to her older brother and another part to her younger brother. Unfortunately, my aunt’s older brother isn’t supporting her, and she’d like to sell part of her inheritance to me, her nephew (the son of her younger brother). Is this legally possible?

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.