Share transfer to another pvt. company- for fraud

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2017 Hi
1. Xyz private limited have shareholding of ABC Limited listed (75%) company and PQR private limited company(25%).
2. Xyz private limited is running into losses.
3. ABC Limited and PQR limited transferred 100% shareholding to a new Company Ganga Private Limited.
4. Ganga Private Limited is even not paying liabilities and behaving badly with vendors and asking vendors to go to court to get money.
5. ABC Limited and PQR Pvt. Limited saying we were just shareholders in XYZ and not responsible for anything now as we have filed papers with ROC.

Now if looks like a fraud. I need your help in this. How to proceed and recover money.
It looks like Ganga Pvt. Limited will shut down operations in a month and they will not pay liabilities.
Is it allowed that Directors withdraw huge salaries and later sell company to a Rickshaw puller and don't pay liabilities. Please tell me what actions can be taken. Someone told me to report to Fraud investigation unit of government.

Please help its extremely urgent.

c.bakshi

c.bakshi (Expert)
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10 August 2017 in case, winding up proceedings initiated against the company, then money can be recovered, although shares has been transferred by xyz & abc, they will also falls under the meaning of contributory, just file creditors winding up. creditors should file a complaint in nclt

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Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2017 Thank You Mr. Bakshi
As xyz and abc already transferred the shares and they are saying we are not responsible for anything. If we file for winding up. Company will first pay government dues, labor charges, salary, secured creditors. Company dont have assets and we wont get anything.

How can we take XYZ into loop as XYZ.Ltd is a very reputed company.
Waiting for reply sir. Also suggest me where I can read about it.

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