Legal Question in Business Law in India

we are a group of 7 friends, and we started a company of our own in india. At first we all were the directors of the company when the company was incorporated according to company's act of 1956. But later on we came to know that the directors of any pvt. ltd firm can be seen online at the website www.mca.gov.in. The thing was we did not want the public to know that we all 7 are the directors, we wanted to showcase only 2 directors. So we 5 friends gave the resignation letter as a director. SO currently there are 2 directors only. Now we want to draft a contract which gives the remaining 5 friends equal profit share of the company . eg. if profit is 70,000 per month. every one should get 10,000 per month. if there is loss , even it should be equally divided. Is it possible to draft such a contract. ? please guide through

regards.


Asked on 4/28/13, 3:25 am

3 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

28.04.2013

Dear Sir / Madam,

You should ask your CA or Company Secretary who formed the Company and made the Memorandum & Articles to draft a suitable resolution to this effect.

Regards,

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Answered on 4/28/13, 4:12 am
Jayesh Desai Jayesh Desai

In a Private Limited Company, the profit and loss belongs to the Company and not to Share Holders, Company is an independent juristic entity. You can do this only in a partnership, and not in a Limited entity.

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Answered on 5/01/13, 7:16 am
uttam Tibrewal

dear client.........

yes its possible mail me at [email protected]

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Answered on 5/06/13, 5:44 pm


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