- Is private limited company director is classified as employee or self employed?
The director is a whole-time director or managing director, he is classified as an employee of the company where as the independent directors/ non executive directors are not employees of the company. In any case the directors are not considered as self employed.
- How do I remove/replace a shareholder in a private limited company without commencement of business and a bank account in India?
It is not possible to transfer the shares before depositing the paid-up capital in the bank account and filing INC 20 A. The first shareholders/ subscribers are those mentioned in the MOA and AOA of a company and by default, the shares are allotted to the first subscribers/ shareholders.
Hence, the first subscribers are required to deposit the paid-up capital in the bank account of the company and file INC 20 A for any further transactions to take place. The shareholders can be removed or replaced only through share transfer and share transfer can be done only after depositing the paid up capital in the bank account and filing INC 20A.
- What are the benefits of converting a private limited company to OPC?
The major benefit of converting a PLC to OPC is that being a small company as per the provisions of Companies Act, there will be comparatively lesser compliances and increased flexibility.
The decision to go for trademarking depends upon the visibility of your business. If you’re planning to start your business in a large scale with intense marketing, better to do trademark first and register the business later. On the other hand if your business takes off slowly, better to register the business first and the trademark later.
- How do you remove a director from a private limited company?
A company can remove its director by passing an ordinary resolution unless he was appointed by the Central Government or the Tribunal. The steps involved in removing a director are as follows.
1. Convene a board meeting by giving 7 days notice with the agenda of removing the director.
2. In the board meeting, a resolution to convene the extra ordinary general meeting and the resolution to remove the director need to be passed.
3. 21 days notice is to be given to convene the general meeting and in the general meeting, the shareholders can cast their votes. If the majority is in favour of the decision, the resolution will be passed.
4. Forms DIR 11 and DIR 12 shall be filed with the board resolution and ordinary resolution as attachments.
5. Once the forms are filed, the name of directors shall be struck off from the master data by MCA.
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