Sharda, Shiv's mother is a shareholder in a private limited company. Shiv is Director and sharehold…
Sharda, Shiv's mother is a shareholder in a private limited company. Shiv is Director and shareholder in another company. Shiv wants to buy shares from Sharda. Is it allowed? or some approval is required? Is there any ceiling or cap on it.
There are certain regulations and requirements that must be followed when Shiv wants to buy shares from Sharda in a private limited company.
Firstly, Shiv will need to check the articles of association and shareholders agreement of the company in which Sharda holds shares, to see if there are any restrictions on the transfer of shares.
If there are no restrictions, Shiv can proceed to purchase the shares from Sharda.
However, if Shiv already holds a significant number of shares in his own company, he may need to seek approval from the board of directors or shareholders of his company before making the purchase, as it could be seen as a conflict of interest. So he should look into the Articles of Association of the company where he is director or any other agreement that his company has published.
There is no specific ceiling or cap on the number of shares that Shiv can buy from Sharda, but it is important to ensure that the transaction is done at an arms-length price and is in compliance with all applicable laws and regulations.
