One Director not supporting the other Director in smooth handling of the Company Affairs e
A Pvt Ltd Company of 9 years vintage. There are two directors M & S. M is the founder and S joined later. M gave 54% equity to S in lieu of the investment by S. Operations ran smoothly for 8 years. M & S has not seen the holistic financial well being of the company all through this period. They just window dressed the balance sheet and shown 3% to 8% profits every year. In reality, the company accumulated 13 cr losses over a cumulative Turn Over of 70 cr. This 13 crores includes a joint liability of the company towards GST, Unsecured Loans EMI Payments, Vendor Payments and other such statutory things. Balance 9 cr is the loans from friends and relatives of M&S.The financial stress and the losses came into light during Jan'23. There was an arbitration and people from S side have come forward to provide working capital assistance to the company as Investors. Their job is to provide money for the business and take it back whenever available leaving profits behind to pay EMIs, GSTs, Salaries and other such expenses. They entered into an agreement with M & S to such an effect and entrusted all the account/bank/payable related transactions S on their behalf. They also have taken personal cheques of M & S as a guarentee towards their investment. 6 months passes by. They brought in some money and taken back some money. Net effect is they have not invested anything extra insted used the recievables of the company before the agreement. After the agreement, the complete accounts management, website credentials, bank accounts were managed by them. M is in the dark because they used to procrastimate things whenever M asks for the accounts. Since last two months S has started a propaganda that, he/she is no more handling the company and everything is handled by M. M is still holds 46% shares, but he is like a sitting duck. But EMI people ( about 7 banks/ NBFCs) and Old Vendors and GST people started chasing M. S is not intending to close things properly and just pushing everything on to M's shoulders. M doesnt have access to accounts, bank accounts or any such details that happened in alst 6 months. What can M do in this case ??