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Directorship

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srikanth

srikanth (Querist)

04 January 2017 Should a share holder compulsorily be a director of a company according to companies act 2014

CS JAY GOHIL

CS JAY GOHIL (Expert)

05 January 2017 THERE IS NO SUCH REQUIREMENT. PERSON CAN BE DIRECTOR WITHOUT SHARES. AND PERSON CAN BE SHAREHOLDER WITHOUT HOLDING DIRECTORSHIP

Lalit Kumar

Lalit Kumar (Expert)

05 January 2017 Section 152 of the New Act governs the appointment of directors. Certain specific requirements for appointment of director as laid down in the New Act are-

If there is no provision for appointment of Director in the Articles (AoA), the subscribers to the memorandum, i.e. the shareholders, who are individuals shall be deemed to be the first directors of the company until the directors are duly appointed

So its not at all compulsory that a Shareholder has to be a Director. It can be anyone other than the shareholder as well.

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