• 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 3 years ago in Business Law from Mumbai, Maharashtra
Dear client,
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.
Smita Shah
Advocate, Hyderabad
12 Answers
1 Consultations
4.6 on 5.0
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.
Rajeev Bari
Advocate, New Delhi
1506 Answers
92 Consultations
3.5 on 5.0
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
Ajay Sethi
Advocate, Mumbai
27249 Answers
1480 Consultations
5.0 on 5.0
execute a gift deed in his favour of any   2 bedroom flat  in  south  bombay
Ajay Sethi
Advocate, Mumbai
27249 Answers
1480 Consultations
5.0 on 5.0
sir there is no limit to that you can also this with your brother,probably he has something very good in mind
Rajeev Bari
Advocate, New Delhi
1506 Answers
92 Consultations
3.5 on 5.0
Make a trust such that the money shall be given to his children on attaining majority or any condition which you find it suitable.
Smita Shah
Advocate, Hyderabad
12 Answers
1 Consultations
4.6 on 5.0
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.
Ashish Davessar
Advocate, Jaipur
19587 Answers
507 Consultations
5.0 on 5.0

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