Shareholding


This query is : Resolved 

(Querist)
12 May 2015 There are two shareholders in a company. Mr. A holds 98% of shares and Mr. B holds 2%. Now Mr. B intends to sell his holding to Mr. A, which makes him 100% shareholder in that company. Is this possible?

The company cannot convert itself to one person Company as its paid up share capital is more than 50 lakhs and T/o is more than 2 Crore.

my query is, can the concept of nominee shareholder be applied here? If yes, what is the practical implication of it?

Please assist.

Pratik Shah (Expert)
14 May 2015 I think Nominee concept does not apply here.
Practically, you can transfer one share to his/her relative. That would be perfectly possible.


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