Dear All, I am a shareholder of an Indian private company under company s act 1956. My associate has cheated me by sourcing directly the product without my knowledge, while I had an exclusive right to source the products. The matter as been brought before the CLB of Chennai. . Since two years, the Managing Director who is now sourcing directly the same products is also a shareholder. We had an agreement to share equally the profits, but has now decided to grant himself a remuneration as he had earlier kept me away from the Board and is exercising his casting voice in annual general meeting to pass all the resolutions, despite my dissent. My question is the following : Considering that the matter has been brought before the CLB, AM i entitled to source the products for another Indian Company to get a revenue too???? Since Courts are long and still did not take any remedy to make respect the excluvity and equal revenue agreement. My expertise in sourcing the products for india is my only expertise to earn my life !!! What is your advice. Thank you.
First answer received in 30 minutes.
Lawyers are available now to answer your questions.
1) it is necessary to peruse agreement signed by you with the Indian company
2) if the MD and associate have violated provisions of agreement and yiu have approached CLB you should await its decision
3) you should not act in contravention of agreement and source product to another Indian company
4) if there is any arbitration clause in your agreement for resolution of disputes you could have invoked the said clause for faster resolution of disputes with the company
If your partner has infringed upon your rights to source the product and the matter is before the CLB, chennai, then there is no bar for you to source the same products to another company since you already have exclusive rights to the said product.
Unless and untill he brings a stay against you from sourcing this product, there is no impediment for you to do so.
Kindly proceed.
What you have stated are part of interim reliefs during the pendency f the subject matter before CLB.
If you feel aggrieved by the activities of the opposite person especially when the matter is subjudice before an authority pending decision on all such issues, the activities of the other party shall be a prejudice to the main matter hence he has to be restricted from indulging in such activities which is detrimental to your interests. you may move the CLB with an application seeking interim relief on the issues of concern.
