Can a Pvt Ltd company appoint Director by giving certain percentage of shares to the person without consideration?
Somaas Kandan (CA Final) (385 Points)
02 March 2013Can a Pvt Ltd company appoint Director by giving certain percentage of shares to the person without consideration?
S.Vinothbabu
(CS Student)
(69 Points)
Replied 03 March 2013
In a Private company, Director need not have any qualification shares for the appointment.. so there is no relation between shares and his appointment
For public limited company, qualification of shares is must
Somaas Kandan
(CA Final)
(385 Points)
Replied 03 March 2013
Ok. But my question is whether they provide shares without consideration received from incoming director?
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 04 March 2013
| Originally posted by : SOMAAS KANDAN | ||
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Ok. But my question is whether they provide shares without consideration received from incoming director? |
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1. I am sure you are aware about the fact that there is no compulsion on the candidate to take shares to become director of the company.
2. Giving shares without consideration to an incoming director is not a good idea. But according to me this gift is possible through a gift deed with certain Tax implications applicable on the proposed director.
Somaas Kandan
(CA Final)
(385 Points)
Replied 04 March 2013
Thank You very much Mr. Ankur sir and Vinothbabu.
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