Private Limited Company
Two people formed a private limited company stating as stated capital 1lakh and paid up capital 1 lakh, but one of the director has not invested to start the company and all the burden lies on the second person. However, the person promised that he will pay and has been prolonging ever since actually waiting for the first business profit to happen and pay from that. Now the two people are directors with equal responsibilities and have equal shares. The share certificates are not signed by the defaulter. It has been more that 2 years now that the default director has not paid, nor signed the share certificates nor he is willing to transfer the shares to someone willing to take up nor he is paying up the initial capital to start the business, now that the complete company has been formed and he is yet to pay up for the capital the following questions arise.
Q1. Can one director of two take out the other director from the company and as a shareholder. If yes, how could he do it.
Q2. How do we deal with defaulters in paying the upfront capital to start the company.
Q3. How do we deal if the defaulter is misusing by purchasing any materials with the company TIN via interstate to avail the 2% CST benefit instead of 14.5% VAT.
Q4. Even if we manage to take him out as a director, how do we deal with removing him as a shareholder.