How to resolve constant disputes over our family business?
My grandfather and mother (an eye surgeon) started a business from scratch 23 years ago. My father (a civil engineer) joined the board a couple of years later. Today, that business has grown and my mother, father and uncle are Directors on the board. My grandfather was the M.D abd he passed away without leaving any will. My uncle and grandmother forced my father and cheated him into signing documents that gave my grandmother 92% of the shares and the rest divided into my uncle and my dad each.
Now, everyday, my grandmother and uncle come and pick fights with my parents at the hospital, scream obscenities at them and try to bully them into agreeing with my uncle's investment decisions. My parents were harassed by my grandfather before he died on similar lines, and they have had enough. They want to continue working at the business without the mental harassment and drama. They would like to pay off my uncle but he demands that he give us money worth my grandmother and his shares. My grandmother is openly supporting him and my parents' health has worsened because of this constant havoc. I want to know what legal action they can take on my grandmother and uncle, and resolve this issue once and for all.
On another note, my grandmother and aunt used to cut up my mother's and my clothes, steal our footwear and make threatening calls to us and my other aunt, and forced us to leave the family home. I myself heard my grandmother 's voice on the phone talking to me and threatening to kill my mother if she didn't 'fall in line'. My parents are not devious people and just want an end to all of this. What do we do?
Asked 3 years ago in Property Law from United States
1. This is more of a family dispute than legal one and should be resolved behind the closed doors.
2. If it fails then only take legal recourse.
3.File a suit for declaration and injunction so your uncle and grandmother may not disturb the peace and tranquility of his environment.
4. He can file criminal case of criminal intimidation and extortion as well.
Inform the local police asap.
Hi, as per the narrations there was a settlement entered into between your uncle your father and grandmother in the agreement in spite of that they are creating problems so better you have to file a injunction suit restrain them from interfering your property.
2. You can also file a police complaint for abusive language used by your grandmother and uncle.
1. You have two issues. One is ownership of the business and the other is cutting up your clothes etc.,
2. After your grandfather died intestate, his said 92% share of the business will be equally devided amongst all his children and your grandmother,
3. Your father can claim partition of the said shares,
4. If he and/or your mother4 faces any harassment by your uncle and/or grandmother, ask them to audio record evidence of such harassment and then lodge a police complaint,
5. Lodge similar police complaint in case of personal harassment like tearing clothes, stealng footwear etc.
Since you have not specified clearly but throughout your paragraph talk about a board of director i am assuming that the business is carried out through a company.Your situation is ideal for a mismanagement oppression petition however your shareholding must be at least 10% of the entire shareholding or you must have 1/10th of shareholders supporting your petition under the company law. The remedy is also according to your liking because the practice is that the company law board will exercise its power under section 402 and try to save the company. In its attempt to do so the company law board is empowered to order buying off, of the shareholding of one group by another.
You also have not mentioned the location of the company. the only problem is that the company law board is present in only 4 states currently with the principal bench located in Delhi. The others are in Kolkata, Bombay and Chennai. So you might have to travel to an adjoining state to pursue your remedy. This is ideal for you as long as you fulfil certain criteria .
1) what is nature of the organisation ?
2) is it s put ltd company?
3) what are the document s signed by your father?
4) when were they signed by your father?in other words how many years have passed since said documents were executed?
5) once your grand mother has92 per cent of shares she controls company
6)it is necessary to peruse all documents cited by you to advice
you can file FIR against them under section 323/504/506/406/427/379/384/447 of IPC for threatening, stealing , extortion, criminal intimidation, mischief and criminal trespass. you can also file civil suit for validity of document which was signed by your father. That document is voidable under section 15 of contract act and also you can file an application under section 397/398 of the Companies Act, 1956 for cancellation of shares.
1. Your father can challenge in the court the document of transfer by which he transferred to your grand mother 92% of shares as the said transfer is vitiated by cheating. However, this is subject to the time which has lapsed as from the date of execution of the said document.
2. To end the harassment they are facing they can move to court and seek a restraint order against your grandmother and uncle.
3. A complaint for intimidation can be lodged against your grandmother for threatening to kill your mother. This may result in her arrest and prosecution.