Shyles (Sales) (34 Points)
24 August 2010Need advice !
A friend of mine who is running a Pvt Ltd. Company in Mumbai, India, all by himself wants me to join hands with him, due to my experience in the corporate world. The investment in manageable, but I will be sacrificing a steady job and taking a risk. Therefore, how does one make sure that he/she becomes a part of the company, is in control of the strategic decisons & also gets a fair share of the profits.
In anticipation !
Thanks !
vivek
(CS)
(751 Points)
Replied 25 August 2010
Shyles
(Sales)
(34 Points)
Replied 25 August 2010
Thanks Vivek.
As about the "day to day control on managing the issues as well as formulating the strategies" - does this depend on the number of shares that one holds ? There are currently 2 directors in the company. I will become the 3rd Director.
Regards
Shyles
HARDIK
(COMPANY SECRETARY NCFM (Corporate Governance ))
(664 Points)
Replied 25 August 2010
Hi
you should become director so you have control over the affairs of the company and also well aware about the day today affairs of the company.
Shyles
(Sales)
(34 Points)
Replied 25 August 2010
HI Hardik,
Is there any minimum shareholding advised so that you do not get over ruled in the decision making process.
Thx
Shyles
HARDIK
(COMPANY SECRETARY NCFM (Corporate Governance ))
(664 Points)
Replied 25 August 2010
There is no specific ceiling. However person or group of person holding 10% of voting power are eligible for appointed as Director.But in your case attend every board meeting so you are aware about the affairs of the company. Also check out the financial affairs of the company.
Bhakti
(CA)
(267 Points)
Replied 27 August 2010
THe best is you can frame the shareholders agreement in which you can draft the conditions which you want.
Bhakti
(CA)
(267 Points)
Replied 27 August 2010
You can get it in a book on agreement or google it out.
I am providing one link below:
You can remove the non required stuff
https://www.airportsindia.org.in/righttoinformation/SHA_DIAL.pdf
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 27 August 2010
Dear Shyles,
Just hold a good number of Shares and become the Director (Whole Time Director) of the Company. This would solve your all problems.
1. You would get earning by way of remuneration and dividend etc.
2. You would be the part of every decision of the Board as well as Company.
CAclubindia
