17 August 2010
Hi I have 2% holding in a private limited compnay. Total shares 31,50,000 Now that company book value per share is Rs.18(Face value of Rs.10) Due to my health conditions i would like to come out of that company Management is willing to give to me only Rs.19 per share even though the book value is Rs.30 Artcles also says Purchase value to be "fair value to be determined herein after" can you please suggest us how to proceed with this isssue Is there any legal protection for me to get the amount at the rate of Rs.30 per share? Is there any possibility that Fair value is less than the Book value Generally?
19 August 2010
Kindly go through the articles of the company and watch for the surrender of shares by the holder of the company clause and see whether the company can purchase at Rs.10. If the articles says that the purchase cost is the face value and not the book value you are unlucky. If nothing is mentioned write a letter to the company by registered post to purchase ur shares at Book value.Wait for the reply and take decision.
26 May 2011
Hi I have 2% holding in a private limited compnay. Total shares 31,50,000 Now that company book value per share is Rs.18(Face value of Rs.10) Due to my health conditions i would like to come out of that company Management is willing to give to me only Rs.19 per share even though the book value is Rs.30 Artcles also says Purchase value to be "fair value to be determined herein after" can you please suggest us how to proceed with this isssue Is there any legal protection for me to get the amount at the rate of Rs.30 per share? Is there any possibility that Fair value is less than the Book value Generally?
CAclubindia
