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sowmya

sowmya (Querist)
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07 September 2014 Is it necessary that director shall have atleast one share in the company?

SAMADHAN SHRIRAM

SAMADHAN SHRIRAM (Expert)
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09 September 2014 Qualification shares is no more required even for public ltd & Pvt Company as per new company act 2013.

In case of Company act 1956-

Provisions related to qualification shares are governed by section 270 of the companies act, 1956. A director of public company is also not required to hold qualification share unless required by articles u/s 270.

Further Section 270 and 272 does not apply to Private Company by virtue of Section 273 of the Act. However, the Articles of a Private Company may provide that the directors are required to obtain shares as qualification shares.

If your articles contain the requirement to hold qualification shares then by passing special resolution in the general meeting

you can amend your articles and remove that clause from article.
Within 30 days of passing special resolution file form 23 with ROC.

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