Hii
This query is : Resolved
07 September 2014
Is it necessary that director shall have atleast one share in the company?
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.
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.
Message likes :
1 times
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
Unanswered Queries
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
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
