Queries
Hello,

I am a founding partner and technical director (Executive Director) of a startup based out of Bangalore (which started in early 2010). Initially the stack pattern was 33% each of 3 directors. One was working outside in some organization and two of us were managing the company. I have done a great work in this company to bring it to a level where it could have sustained by itself. Both of my other partners were friends of me and I respected each one personally. But this respect and hardwork of mine went in vein - they brought investment from their family members and friends and diluted our stack to 16% each. This investment was brought in without my full consent too (I have proofs of sending emails not agreeing for bringing investment).

Even after these investments,they never invested the investment into right channels like marketing team building etc and started forcing me to do marketing (I am technical person) which I did to get the company out of it financial crisis. But they started adamant approaches like not conducting board meetings, ignoring my suggestions, acting unilaterally etc. Which is when I revolted against their mis-management and I resigned to the post (through an Email).

But they didn't accept my Resignation siting reasons like I need to work to get the company to profit and all. But I was not in a position to accept their proposal as I knew that single man's army can't win the battle of getting company to profitable condition. So I struck to my decision and fought for my resignation acceptance. Since they, their family/friends are major stake holders now, they are not even putting the resignation into board meetings (frankly I don't know even they have conducted one for last 2 years) and blocking me.

Also it is more than a year now since I drew salary last time from that company. I shifted to different location to avoid high living cost (no salary was given or I drawn from that company for more than a year now). Even during these days of last one year, I have supported the customers of that company as I only sold the product to them (on ethical grounds). Even after 1 year without salary and remote relocation, they are not ready to give me the exit letters or letting me go out.

I am planning to join some company as an employee which is a necessity in the times of my deep financial problems. Please let me know how can I exit from the Managing Director of the company (with or without my stake - I don't care) without their consent too.

Thanks for your advice in advance..
13th May 2014 From India, Mysore

Dear Mr. Venkatesh
Please check the below links.
http://www.accaglobal.com/content/da...ech_tp_rfb.pdf and Director exit procedure in private limited
Hope this will be useful to understand.
I am attaching the same in PDF Format also
13th May 2014 From India, Kumbakonam

Attached Files
File Type: pdf Exit from company.pdf (574.0 KB, 395 views)


Hello Bhaskar,

Thanks for the guide. I read it and it was useful in general understanding of the Resignation related stuff. But I am afraid that I am in a vicious circle here in my case

1. I resigned through EMAIL almost 2 years back and then again 1 year back finally (First resignation was not accepted and they convinced me to continue for 6 more months).

2. After this EMAIL exchange about the resignation, they emotionally blackmailed me for sometime and then they just ignored my resignation and continued their work.

3. After resignation, I stopped drawing any payment too from the company and they just ignored that too (they even didn't tell me to take the salary anytime).

4. Now after one year, I just want to continue my career joining another company. But hiring company expects exit letters along with salary certificates etc to join them. But the previous company is not ready to issue any letters and they are insisting me to continue a a director (thereby they are blocking my joining plans and earning plans).

5. Board Meetings are never been held and Company Secretary just prepares a Meeting Minutes and get signed by those two guys (they are signing for everything - I am not). So they never treat my resignation as a issue to discuss.

I am really interested in getting the EXIT forcibly, whether they agree or disagree. Please let me know how to proceed in this case (for Indian laws specifically).
13th May 2014 From India, Mysore

Hope you have the print out and some hard copy records with you. Further send a resignation letter and demand for the compensation to be paid to you for the period not received. send the same (3 copies 2 directors and HR Department) through registered post with acknowledgement due. Further on receipt of the mail by any one wait for 1 week and send one more mail by registered post with ack due and contact a good lawyer from your area and discuss with him. He will help you in this matter. Further for fee details you can pay him in some percentage like 15% to 30% of your receivables. But you must pay the court fee and other charges initially.
13th May 2014 From India, Kumbakonam

Hello Bhaskar,
Thanks for the guidance. I will do as you said. But I have only one advice needed from you - the company is not in a good financial condition now. They are even fighting to survive. In such a case, can they really compensate for the salaries pending. Also is it ethical in my perspective to demand the money in such a situation?
Anyway I will proceed as you said. Thanks a lot for the guidance given.
13th May 2014 From India, Mysore

As they have not seen and show the professional ethics, you also need not to do so. Whether you accept the compensation and salary package and even your part of 33% or 16% of shares of the company, you just demand for the same. If you do so, obviously their mind will get diverted in the monetary aspect and they will not think of retaining you in the company. Hence you will get relieved as soon as possible.
Further as a third registered letter you can mention the following wordings "If I am not relieved with my pay packages pending with you, notice and retrenchment compensation, I have no other go except approaching the court of law".
If you do so, the fear will get created in their mind, so they will co-operate with you in relieving you from your organisation.
13th May 2014 From India, Kumbakonam

Hello Bhaskar,
Thanks a ton for the advice. I understood your guidance fully. I really can't forget this guidance for my whole life. I will be deeply indebted to you for your help.
I will proceed as you said. Thanks a lot again for your guidance.
13th May 2014 From India, Mysore

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