Qualification shares

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rahul tejaswi (Querist)
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18 October 2013 is there any exception to section 270......... lyk does director is bound to purchase a share of the company as qualification share where value of a share is rs.10000??? watng 4 experts opinion on ths

Nikhil Kaushik

Nikhil Kaushik (Expert)
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19 October 2013 Dear Rahul,

A director is required to purchase qualification shares only if it is prescribed under the Article of the company.

However, if it is provided under the Articles, then it shall be necessary to purchase the share irrespective of the nominal value of 1 share be it Rs 1000 or Rs 10000 or 1 lakh.

Refer sub-section 3 of Section 270.