Legal Question in Business Law in India

Sir, I have some shares (say 10 lakh) in private ltd co. for 4 years. In the last year (11-12) the profit has been converted as surplus/reserve fund as they did it in the prvious years. Now it become around 79 lakhs. Only the first year they issued 10% bonus shares (1 lakh) and paid out 2.5% (25,000/-)as divident due to tha lack of physical cash in the company. Now some of the share holders (including me) wanted to transfer the shares partially/fully. Our MD (he is holding more than 51% of total shares) ready to buy the shares but he will give only the share value which is at present (ie. 10.1 lakh). He is neither ready to declare divdent nor agree to issue bonus shares as the latest Balance sheet shows 36 lakh net profit. He well know that some of the share holders want to transfer their shares. My question is, if once we sell the shares partially can we ask the divident or bonus shares as per our previous share holding? If MD not agree to decalre divident or bonus shares what can we do? He know ultimately the surplus/reserve fund will come to his hand though he will left in the company if all the share holders go from the company

Asked on 6/07/13, 6:40 am

uttam Tibrewal

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dear client...

NO once you sell the share you can not claim as per perivious holding...

for any query do reply me at [email protected]

Answered on 6/07/13, 9:38 am

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