Non Shareholder and non member to Become a director

This query is : Resolved

nagaraja (Querist)
Follow

28 September 2010 Dear All,

Is it possible to a non member or non share holder to become a Director in a company???? If Yes what are limitations in his rights as compare to Share hoder director?????

Ankur Garg

Ankur Garg (Expert)
Follow

28 September 2010 To become a director of a company there is no legal compulsion to hold shares of that company.

In that way a non-member can be appointed as director of the company.

However in case of a public company there is an exception i.e. qualification shares.

As per section 270 if articles of a company requires a candidate to obtain shares as min qualification shares then it is mandatory to obtain such shares. But section 270 is applicable only on a private company.

Thanks

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now