Question) whether a shareholder of a private company is entitled to give notice at the AGM for his appointment as Director of the company as 257 is not applicable for pvt. companies.
what is the resort to the company for such notice by the shareholder to the company. and the company do not wish to appoint him as the director. as majority of the shareholding is with the company.
what would be the consequences if a shareholder in a private company holding approx 26% shares after giving notice to the company for his appointment if not appointed.
whether it will affect minority interest.??
there are only two shareholders in the company. other shareholder is holding the rest of shares.
06 December 2011
As you know section 257 is not applicable to pvt companies, company is not bound to respond to the request of the shareholder. Company can out rightly reject his request.
In your case rejecting the request would not be equal to damaging the minority right. On the basis of minority interest you can not compel a company to do anything you want.
CAclubindia
