Another option for share holding in a company
Dear Sir/Madam, I need a little advice. I am a director of a pvt ltd company. my wife is the other director. (total 2 directors).. My younger brother works in my company. He is very hard working and has put in a lot of hardwork to bring up our company for the past 5 years.... I cannot give him any share holding in the company (due to family issues). But I want to still secure the future of my borther and his family (just in case anything happens to him). What is the way out. Kindly guide.
Asked in Business Law from Mumbai, Maharashtra
You can gift him any property. Secondly you can start a new company in the name of your brother .and all the work your brother is doing can be routed through this company. Also you can have a long term agreement with this company.
you can increase his salary to such a extent which gives him the status of director, though he may not be a director..
you can also give him annual bonus in the form of some immovable or moveable assets.
Advocate, New Delhi
in view of the hard work put by your brother you can appoint him as Director of company . if it is not possible give him good position in company . based on his work offer him incentives in form of annual bonus . increase his salary . provide rental accomodation at company cost and other perks
Dear Gentlemen, Thankyou very much for your valuable suggestions. Right now my brother is earning well and also has a status of CEO in my company. All his dues, incentives, bonus, etc are already given to him...He takes care of our Dubai office and enjoys all the benefits & perks there........ Technically I cannot give him any stake holding either in my company or any new company. I am not worried about the present. He is earning well enough now.... I want to secure the future of his family, just in case something happens to him.
Asked 3 years ago
execute a gift deed in his favour of any 2 bedroom flat in south bombay
sir there is no limit to that you can also this with your brother,probably he has something very good in mind
Advocate, New Delhi
Make a trust such that the money shall be given to his children on attaining majority or any condition which you find it suitable.
If you are not prepared to give him any stake holding or a directorial position in the company then you may make a fixed deposit receipt in his name. Alternatively, you may gift him a property by making a gift deed in his favour.