Jai (Individual) 27 March 2014

Director and share-holder - who is in charge of the company?

I want to register a pvt ltd company, but since there is a requirement that there should be minimum 2 directors - i am forced to bring in a dis-interested person as a director just to satisfy this requirement.

For all practical purposes i alone will have to run the company

How does equity/share-holding work then? Can i clearly specify(how) that i own 100% equity of the company?

Please advice.Thanks

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3 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 27 March 2014

Section 2 (13) of the Companies Act, defines Director as any person, occupying the position of a Director, by whatever name called. At times Articles of Association may provide guidelines for appointing a Director but generally it is shareholders who decide that who will be able to run the business on their behalf successfully.

chandani kumari (Corporate & Tax Lawyer) 29 March 2014

Dear sir,

With the passing of Company act 2013, now a company can be made by an individual person, So you should no need to force any person to become a director of your company, you only can run your business perfectly with the name of one person company,

for more details visit askcommercials.com