I joined my family business as a director in 2011 & in 2013 I was transferred the shares of the company, by my mother and father (who are the other two directors in the company). Before 2013 the shares were divided among my mother and father at 50 shares each, out of 100. But after 2013 the shares were as under:-
My fathers shares = 33.4
My mother’s shares = 33.3
And my share = 33.3
Now my question to you is that I have never seen these figure in any documents. So how can I confirm that I have 33.3 shares in the company? I want a definitive way of knowing that I have 33.3 out of 100 shares in my company. Because of some past family issues, my mother and I can’t trust my father in this matter. So can you guide me with this?
Asked 2 years ago in Audit from New Delhi, Delhi
As it is your family business, you may have access to the secretarial records maintained by the company. In such case, you can see the Annual Return of the Company filed every year to confirm whether you are a shareholder. This is an authenticated way of confirmation of your status.
It is mandatory to disclose the names of all the shareholders who hold more than 5% of the total share capital of the company in the audited financial statements. As you hold 33.3% of the shares of the company, your name should have been disclosed in the audited financial statements. You may check this out from the audited financial statements, under the note relating to Share capital.
Talk to B Vijaya Kumar
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Thank You for your quick response.
Asked 2 years ago
There are 2 ways of finding this:
1. Obtain the share transfer certificate from the company. This document is valid only with the payment of required stamp duty in the state of the registered office.
2. Obtain the Annual return filed by the company. Form 20B. which clearly explains the shareholding pattern of the company.
CA. Rajeev P T
Rajan Chakravarthy & Associates, Chennai
Talk to Rajeev P T
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