Legal Question in Business Law in India

M/s Din Sons Pvt limited was formed by Mr. Rahim, Mr. Kabir, Mr. Shabbir and Mr. Salar. Mr. Salar and Mr. Kabir were elected as directors of the company. The company issued ordinary shares to Mr. Rahim, Mr. Kabir, Mr. Shabbir and Mr. Salar. Later, company passed a resolution and authorised the directors to issue further shares to outsiders without issuing right shares. The company issued shares to Mr. Jagnu with the following terms and conditions that company will pay fixed dividend at the rate 15% shares per year and if company could not pay dividend in any year then it will pay dividend next year and so on. The company could not pay dividend for ten years. Meanwhile the company was ordered to be wound up. The total remaining assets of the company after paying all creditors was Rs. 100,000. At the time of distribution of remaining assets, the arrears of dividend payable to Mr. Jagnu was Rs. 110,000. How and why the assets will be distributed amongst the shareholders?

Asked on 9/02/20, 4:23 am

1 Answer from Attorneys

Rajiv Chandhok Ph: +919810050896

The ordinary share holders would be settled in the end. A DETAILED AND IN DEPTH EXAMINATION IS REQUIRED IN THE MATTER.

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Answered on 9/02/20, 5:07 am

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