Shareholders did not induce their amount of subscription

    Posted By : CS Gaurav / Published on : 09-Nov-2017 08:33 AM / View : 318 / Comment : 2
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    Dear Professional friends, My client registered a company in Aug 2017 wherein there were three subscribers; A, B, C. B & C didn't transfer their amount of subscription into the company Bank account. Also, they are not willing to cooperate in signing in any document neither for share transfer etc. What remedy A has in this case?
    Read more on : subscription amount their induce shareholders

    • Subscription of MOA by the subscriber is a contract between the subscriber and the company. Subscription of names to MOA implies that the subscriber agree to take the number of shares in the capital of the company set opposite their respective names in the MOA.

      Once the MOA is registered, the subscribers cannot divest themselves of their liability, if they do so then it is a breach of contract and it will attract the provisions for breach of contract.

      So in my view A can get the remedy under contract act for breach of contract.

      Thank You.

      10-11-2017 / 05:20:19 PM
      Reply
    • Thank you !

      11-11-2017 / 03:37:55 PM
      Reply



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