Case 12 Ruturaj Pencils Private Limited

Bilva Desai & Kinjal Parikh

Assistant Professors, L.J. Institute of Management Studies, School of Management Studies,

DOI: 10.4324/9781003351825-12

On December 11, 2020, Mr Vasant Patel (61) and Mr Laxmikant Patel (63), the Directors of Ruturaj Pencils Pvt. Ltd., received a proposal from an outsider Mr Gautam Sharma, Marketing Head of a leading pencil brand in India. They had to decide whether to accept his proposal (Exhibit 12.1) of Rs 40 million and allow him to be a board member of the company in exchange for a 30% profit share.

Exhibit 12.1 Gautam Sharma’s Proposal
1 Offering of fund Rs 40 million (released step by step)
2 Stake requirement 30% ...

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