director
This query is : Resolved
20 October 2010
A director in a private company didnot hold any qualification shares though the articles of the company prescribes that the director has to hold. He was appointed as Director in 1993 and stil continuing.. Now whether the director has vacated office as per sec. 283 or he was not disqualified as per sections 270-273. Kindly advice me in all the respects.
20 October 2010
Section 270(1)provides that it shall be the duty of every director who is required by the articles of the company to hold a specified share qualification and who is not already qualified in that respect, to obtain his qualification within 2 months after his appointment as director.
Failure to obtain within 2 months the qualification shares will result in vacation of the office of director by virtue of section 283 (1)(a)
If, after expiry of the said period of 2 months, any person acts as s director, he shall be punishable with a fine which may be extended to Rs. 500 for every day between such expiry and the last day on which he acted as a director (Section 272)
U/s 283(2A), if a person functions as a director when he knows that the office of director held by him has become vacant on account of disqulaification mentioned u/s 283(1)(a), he shall be punishable with fine which may extend to Rs. 5,000 for each day on which he so functions as a director
Failure to obtain within 2 months the qualification shares will result in vacation of the office of director by virtue of section 283 (1)(a)
If, after expiry of the said period of 2 months, any person acts as s director, he shall be punishable with a fine which may be extended to Rs. 500 for every day between such expiry and the last day on which he acted as a director (Section 272)
U/s 283(2A), if a person functions as a director when he knows that the office of director held by him has become vacant on account of disqulaification mentioned u/s 283(1)(a), he shall be punishable with fine which may extend to Rs. 5,000 for each day on which he so functions as a director
20 October 2010
Thank U Mr. Mithesh. But in sec. 273 it was mentioned that sec. 270 and 272 are not applicable for Private co. So as per sec. 273 the director is not disqualified. but sec. 283 says he will be automatically vacate his office. Kindly tell me which of these sections will prevail. Whether that director can take the advantage of sec. 273 and ignore sec. 283
20 October 2010
yes.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Showing Gift from relative in ITR for this year
- ITR selection for salaries and capital gain less than L
- Share accounting-->fifo - capital gain - period as per fifo?
- Treatment of Pension ?annuity returns on PMVY
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- Soyabean hsn code and gst rate
- Regarding IMS Mandatory from 1st July 2026
- BIS Certificates
- Last year TDS Claim
- GSTR-4 Annual Return ! Pending Returns for F.Y. 20-21 to 22-23
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Capital Gain on EUITY Shares
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
