Sale of shares

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

11 February 2013 If a company holding 80 or 90% shares of a Pvt. Ltd company wants to sale these shares to one of its director.... what would be the statutory compliance? Will Board resolution be enough for such sale or Extraordinary General meeting need to be called?

Ajay Mishra

Ajay Mishra (Expert)
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12 February 2013 Hi

The Board resolution will be sufficient to give effect for this sale.

This will be cover under section 292 of the companies Act, 1956.

Querist : Anonymous

Querist : Anonymous (Querist)

12 February 2013 company is subscriber to MOA and holding these 90% shares via nominee and the nominee is the same person whom company wants to sell its shares. Would this make any difference.

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Querist : Anonymous

Querist : Anonymous (Querist)

13 February 2013 Pls reply and pls provide the format of Board Resolution for sale of such shares

Ajay Mishra

Ajay Mishra (Expert)
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13 February 2013 According to section 12, there should be at least two persons in case of private company and seven in case of public company.

If you will transfer such shares, then all shares will be held by one shareholder (nominee).

Querist : Anonymous

Querist : Anonymous (Querist)

13 February 2013 sir,there is one more shareholder holding 10% shares