My co-founders have started another company and diverting funds into it and kept me away from it
Me (A) and an old friend (B) started a pvt ltd Co. on Oct 2016. My friend was working for a Co. which partners with co's in Tier 2 cities to provide employment and business opportunities. My friend had approached me saying since i (A) had office space we could start in Mysore and he could get us a tie up with this Company (our Clients now) to give us business. I trusted him and partnered with him and incorporated the company in Oct 2016. We started operations in July 2017 and decided to bring an additional director (C) in to the company. So the company now had three directors. The additional director (C) and my friend (B) planned a coup and incorporated another Co. in Oct 2017 and diverted all revenue to the new co. Since (B) has very good relations and enjoys a good understanding with the client, they transfer all the revenue to the 2nd company bank accounts. The revenue is then transferred to the 1st Co. to pay off expenses. Now the 1st Company has everything under it like employees, infrastructure, ESI & PF etc. which basically are all the expenses. The Company is solely dependent on the 2nd company which my co founders have started for revenue. The 2nd Company as per my understanding has nothing else except for revenue which is all right now being transferred for the original companies expenses. I was informed that i was left out of the company by an error but now refuse to add me. They have made up lame excuses like lack of performance and are asking me to leave the Company with whatever i have invested. I do not care to take my money and walk away and i have asked them for 4 times of my investment which they have refused. What can i do legally to put a case?Plz help
Me and my co founders paid up capital is split 50% totalling 1lakh rupees while the authorized capital is 10Lakh rupees in the original company. This means there is additional 9 lakh rs (90% of shares open to be given?). The additional director (C) was brought in to the company but his name does not reflect anywhere as a share holder in the original first Company. The other company that they started they have split the authorized capital (10lakh rs) 50% each so their individual paid up capital is 5lakh rs. There is no room for giving more shares unless from there shares i guess.
I have tried to put everything down here and hope it is clear. Please revert back if you have more questions.
Asked 4 years ago in Business Law