10 March 2010
Suppose there is a Private Limited Co. and the Directors of the Private Limited will be generally relatives or friends, and if this company has 2 directors i.e., 2 persons are relatives say both are brothers. And if this company wants to convert it to public limited then can these two brothers become directors for the company forever ? Is it in their hands ? Or they will remain as promoters only ?
The Business idea belongs to these brothers and its a private company and if they wanted it to convert the company as public limited then they should have a min. of 5 lakhs as capital. And if the entire 5 lakhs are brought by these two brothers then can they only become directors of the company including some other relatives as directors to make it as 7 members ?
When these two brothers are bringing the capital 5 lakhs from their pocket then will there be any obligation that the directors should be appointed by central govt. or any other body ?
I have too many queries like this so please let me know the answers for the above queries and then later i'll post all my queries if any further.
13 March 2010
If in Private Company 2 brothers are Director than on conversion they can remain to be Director in public Company.
Also as per Section 252 Public Company shall have atleast 3 directors, who can be relative of each other and you can make members as 7 individuals who can be relatives of director.
But make sure you comply with all Sections like 295,297,299,300 and 314. as all this section pertain to some way or other to related party.
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