Thai Company

[thewhites1212]

Hi

A friend started a company for which he his 49% shareholder so he could get a work permit.Which even hasnt started trading

One of the majority shareholders, is now demanding money off him for a project that wasnt completed as per agreed.He would like this person off this shareholding ,

Sorry i cant tell you more but he just wants this one person off the shareholding and i believe theirs another two thai's as well who are shareholders giving them 51%

Any advice please if he can do this and which way forward

[ljerams]

Sorry insufficient information provided to advise specifically.

In a normal situation the Shareholder needs to be removed from the Board by majority vote. Your friend plus one Thai who holds at least 2%.

Edited February 16, 2011 by ljerams

[Mario2008]

Wrong section. Moved to business section.

[Sunbelt Asia]

If the shareholder is a director of the company then, depending on the bylaws of the company, it is possible he can be voted out as a director at a shareholders meeting. However, it is not possible to remove a shareholder without buying out his shares as they are the personal assets of that shareholder.

While this covers the main issue, to answer anything further would require alot more information. Consulting with a lawyer would be helpful in resolving disputes of this nature. Sunbelt Asia has extensive experience in handling company issues.

http://www.sunbeltlegaladvisors.com/