Legal Question in Business Law in India
We are a startup based in india and recently we asked one of our board of director to resign as he tried to breach company's code of conduct by giving fake experience letter without others knowledge.
The ex-director holds some percent of shares of the company. Apart from resignation letter we don't have any other letter signed. So in future would we have any problem from ex-director or should have to pay him for the shares he his holding.
If yes, can't we cancel the shares and divide among the rest of the directors.
1 Answer from Attorneys
26.10.2013
Dear Sir / Madam,
NO, you cannot cancel the shares issued to the defaulting Director. The shares the Director is holding has no forbearance on the working of the Company though you can make the Director an offer to purchase all the shares of the Company from him.
Regards,
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