Apni Law Staff asked 3 months ago
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?
Best Answer
Apni Law Staff answered 3 months ago
Under Indian law, you have options, but they are complex. You can attempt to dissolve the company, potentially facing penalties from the franchiser. You can try to sell your shares, but your partner’s reluctance could be an obstacle. Seeking legal advice from a lawyer experienced in company law and franchise agreements is crucial to navigate these options and minimize your liabilities.
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