Our company was set up a year ago. It has two directors – an NRI with a 75% stake and a local partner with a 25% share. The local director has been taking money from the company without the NRI’s consent, despite the NRI being the sole investor.

This situation raises concerns under Indian company law. The local director’s actions may constitute misappropriation of funds, especially if the NRI can prove lack of consent and that the funds were not used for legitimate company purposes. The NRI may be able to initiate legal action against the local director to recover the misappropriated funds and potentially even seek their removal from the company.