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Company Law

VARUN RANJAN (Student) (231 Points)

10 February 2020

A and B started a company, wherein A held 40% shares and B 60%. Baith were directors.

A deposited Rs. 30Lakhs in the company account using which assets were acquired by the company. B, on het other hand, didn't deposit any money in the company account.

In case of windup of the company, can A stake a claim on company assets? If yes how?

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4 Replies

suryaprakash (nil) (47 Points)
Replied 10 February 2020

What is the equity capital composition in the Company? are the shares of a & b fully paid up ?

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VARUN RANJAN (Student) (231 Points)
Replied 10 February 2020

The authorized capital is 60lakhs.

A has paid Rs. 30 lakhs (5 lakhs towards capital and 25lakhs towards loan to the company) which was used to acquire assets for the company.

B haven't paid any capital yet.

The company was incorporated in March 2017

Golu Bhai (62 Points)
Replied 10 February 2020

I think the very first, this scenario will attract the provisions of section 10A.
As far as your question is concerned whether A can stake claim on the assets of the company, it depends on the terms of the contract of the debt which he gave to company i.e. whether it is secured and even whether there is any other creditor.
You can understand all this by correlating it further with very famous case of "SALOMON”.
But after all that certainly would be upto the portion of Debt only.
This will further attract the provisions of section 106.

Finally i would say the question seems incomplete.

1 Like

Atif Khan (151 Points)
Replied 13 February 2020

The Law Requires Board of Directors to Collect the Subscribed Capital from the Shareholder after incorporation.. One the Board of director has collected the Share Capital than they have to file a MBP 1 to registrar confirming that Members have paid the Share Capital and than only the Company can commence business.