appointment of director

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CA CMA CS VIRAG SHAH (Querist)
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28 August 2010 Can HUF become the director of the company under Companies Act.
If Yes, then the shares should be held in the name of the HUF or the Karta ?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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28 August 2010 No HUF cannot be director.

Shares can be held by the HUF but it would always be through its karta.

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CA CMA CS VIRAG SHAH

CA CMA CS VIRAG SHAH (Querist)
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28 August 2010 NOT UNDERSTAND PROPERLY.....

EXPLAIN IN DETAIL............

Aditya Maheshwari

Aditya Maheshwari (Expert)
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28 August 2010 A HUF cannot be appointed as director of the company. Only individuals can be directors.

HUF can hold shares in its own name but it would alsways be XYZ HUF (Thorugh its Karta XYZ).

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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28 August 2010 Section 253 of the Companies Act,1956 says only individual's can be appointed as directors of a company. This legislative restriction has also been reiterated by the Supreme court in the case of Oriental Metal Pressing Works (P) Ltd V Bhaskar Kashinath Thakoor (1961) 31 Com Cases 143. As such an HUF cannot be appointed as director in a company.

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CA CMA CS VIRAG SHAH

CA CMA CS VIRAG SHAH (Querist)
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29 August 2010 thanks a lot

now clear

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