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Managing Share Holders of Pvt. Ltd Company

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sathya

owner

21 Points Posted on 11 January 2010

Hi I am managing a pvt ltd company that was started with lots of trust between various shareholders. Now there is a lot of distrust and dispute amongst the shareholders. The company is in the real estate business

a) Is there any rule that helps the Board of Directors to manage the company without constant interference from the shareholders.

b) Is there anyway to enforce buyout of one segment of shareholders in a pvt. ltd. company to ensure that the company can retain focus.

c) How to protect the rights of the customers from shareholders dispute and from the fall out in case the company needs to be wound up.

Replies (1)

CS Gaurav Jain

Consultant

66 Points Posted on 12 January 2010

Dear Sathya

Normally in such cases it is adviced to execute a Shareholders Agreement which govern the relationship of shareholders amongst themselves and the Company. Provisions can also be made for managment of the Company and the reporting rights of Shareholders.

To give legal binding It is essential that such SHA forms part of Articles of the Company.

In light of your queries my suggestion is to consult some professional personally and share details. On mail one can only advice based on limited information.

regards

Gaurav Jain

gaurav @ rsj.co.in