Is there any difference between Director's holding shares of the company (NOT LISTED) and ESOPs? What if Director is also a Founding Director of the company i.e. his holding is mentioned in MOA & MOA. Can company take back shares issued to him saying he has not completed vesting period say 4 years with the company.
My view on taking back share: Once the shares have been transferred to a person, the person whose name appears in RoC records, is the owner of the shares and company has no right to cancel the allotment. Vesting period is for share option when company says that if you stay for so many years with the company then you can buy say X shares of the company. If the company transfers share to person even before the vesting period, it loses ownership of the shares. Once the shares are transferred to other persons name then company has no right to ask it back, however, other members or shareholders of the company can buy shares of the person if he is willing to sell. Let me know what other members think of this situation.
CAclubindia
