I have incorporated an Pvt. Ltd.company and have 2 directors. Both the directors have 50% stake each.One of them doesnt want to carry on and we dont have any one else to be an director in his place at the moment. Can we make him Non-executive director and transferring some of his shares to the other director and carry on with the usual business? We also dont want his interference in the business in future. Please suggest a possible remedy. Thanks in advance.
08 May 2013
There will be no change in the legal position of dis-interested director if you appoint him as NED and transfer some of his shares. He will continue to become liable as director for the acts of the company.
CAclubindia
