Appointment of a Director

Articleship 1724 views 21 replies

according to AOA , director must have the QS taken

ya I also agree with ankur that QS u/s 270 is not mandatory it is based on AOA requirement.

Originally posted by : Rishav Saraf

CAN AN INDIVIDUAL BE THE DIRECTOR OF A COMPANY WITHOUT BEING ITS SHAREHOLDER?

Please let me know the answer in respect to a private limited company.


 

Dear Rishav Saraf,

 

Yes ! an Individual can definately become DIRECTOR OF A PRIVATE COMPANY without taking a single share. But if AOA provides that the directors is required to take qualification shares, then it must be taken as per AOA.

 

Sec 270 & Sec 272 is not applicable to a private company. So, the private company can make any type of provision regarding Qualification Shares.

He is eligible for being appointed as a director........ even though de does not hold any of the shares of the private company...........

Originally posted by : Rishav Saraf

CAN AN INDIVIDUAL BE THE DIRECTOR OF A COMPANY WITHOUT BEING ITS SHAREHOLDER?

 

Please let me know the answer in respect to a private limited company.

 A director needs to take the shares only if it is mentioned in the AOA otherwise nowhere in the companies act it is mentioned that to become a director u have to get shares.

Dear Friend

yes it depends as per Company policies only which is written under AOA of the Company.

there is not any hard and fast rule that Director must have share holding but their is max limit for compulsory shareholding as per AOA is shares of Rs. 5000 or if one share is more then of Rs 5000 then one share.

 

its not applicable on purely Private Companies

 

So, Pls go through with the AOA of the Company and read part od Directors or Qualification (if there).

and if its in AOA then Director must comply with this qualification with in 2 months form date of his appointment.

 

Regards

Nitin Grover's answer is quite right. This is the exact answer. I hope Rishav you r satisfied from this answer.However dear Nitin as per regulation 66 of Table A provides that the qualification for being a director of a company is the holding of at least one share in the company.


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