Qualification Shares ..Query?

Guest (Querist)
09 May 2010
1)The Nominal Amount of Qualification shares shall not exceed rs 5000.
2)Where nominal amt of one share exceeds rs 5000,Share qualification shall be holding of one share only.

If a director is newly appointed & market value of the shares wen he buys , Qualification shares is rs 1000 per share and face value is rs 10.Which should we consider here for nominal amt rs 10 or rs 1000.ie he has to buy maximum of 5 shares of 1000 each or 500 shares of 10 each.?
My query is regarding "nominal amt".Does it consider nominal value of shares or market value?
Thanx in advance.

B.Chackrapani Warrier (Expert)
09 May 2010
Section 270 says nominal value and not nominal amount. Nominal value is face value. Qualification shares has to be acquired based on the nominal value(face value) and not on the basis of market value.

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