FORMALTIES FOR JOINING AS DIRECTOR IN PVT LTD COMPANY

This query is : Resolved

harkirat singh (Querist)
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06 August 2009 Dear All
Iwould like to know the following
i) Documentation required to join as a business partner of 25% in a Pvt Ltd company and how become a director/chairman in this company.I already have a DIN number.
ii)Formalities & documentation required to give secured loan to the above Pvt Ltd company

Thanks

Harkirat

Rasesh

Rasesh (Expert)
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06 August 2009 Reply to query no. 1: Enter into a Share Purchase agreement for 25% equity stake in the company. The 25% stake can be acquired either by way of issue of new shares or transfer of shares from the existing shareholders.

You may become a director by being appointed by the board of directors and filing the necessary forms with the ROC.

Reply to query no. 2:
Simple Loan documentation with do. A Director can give a loan to the private company but not vice versa.

Ankur Garg

Ankur Garg (Expert)
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07 August 2009 Agree.

Procedure for appointment of director

1. First collect DIN No. of proposed director and get it approved from MCA.
2. Collect consent letter from the proposed director. (Recommended but not compulsory)
3. Convene a Board Meeting for appointment of director
4. Download Form-32 from www.mca.gov.in
5. Fill form-32 and get it certified from a PCS/PCA and upload the same on MCA site for ROC filing with in 30 days from the date of Appointment of director (Board Meeting).

Regards

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Ankur Garg

Ankur Garg (Expert)
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07 August 2009 Find below the procedure for transfer of share in the Private Company:

First check your AOA provisions regarding transfer of share.

PROCEDURE

1. Transferor --- give notice --- to the Company --- for his intention to transfer.

2. Company in turn --- notify to other member --- regarding availability of share and price at which such share would be available.

3. Such price --- generally determined by auditor/directors of the company.

4. Company --- also communicate to member --- time limit --- for option to purchase shares.

5. if nobody comed forward --- then share may be transfered to outsider --- in such case company have to accept the transfer.

Note: transfer to outsider without following AOA procedure will not be operative against the company and transfer to an outsider was held not to be effective.

One more thing give secured loan to ur company otherwise strict provisions of Public deposit shall apply.

Best Regards