Apni Law Staff asked 3 years ago
My two friends and I started a company in Bangalore, casually, as a side hustle. We registered it as a private limited company and made one partner’s parents directors. We had a handshake agreement, each owning an equal share. Two years in, I found out my partners had secretly changed the share distribution. I was completely unaware. Another year passed, one partner left and was paid a lump sum for his share. The company kept growing, but I only learned about the betrayal recently. I’m leaving now, but they refuse to pay me anything. What legal options do I have?
Best Answer
Apni Law Staff answered 3 years ago
You have strong legal grounds to challenge the share distribution changes, as they were made without your knowledge and consent. You can file a lawsuit seeking rectification of the company records to reflect the original equal shareholding, and claim a fair share of the company’s profits or value upon your exit. Additionally, you can explore options for a shareholder agreement or a buyback arrangement.
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