Can a CA who is a Already a "Professional Director" in a company become shareholder of the same company?? Wether this will attract any contravention of Any provision of CA Act?? and if yes then is it possible to Convert him as a "Promoter Director" from Professional Director" to continue as a shareholder??
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Can a CA become shareholder of a company?
Replies (3)
that will lead to contravention only if the CA acts as an Auditor.
Hi Raashi
In the case of Directorship either a C.A or Any other Person Is requied to have qualification shares as written in companies act 1956 in section 270. i.e not exceeding Rs 5000/- within 2 months from the date of joining.
and
If the same C.A act as an Auditor the C.A found guilty in professional misconduct and if C.A holds Shares of The same company Exceeding Rs 1000 , C.A will Desqualify to act as and auditor as written in companies Act 1956 in Section 226.
In your Case
Director can hold shares upto Rs 5000/-
Thanks and Regards
Suraj Pahuja.
Dear Pahuja, a director is required to hold the qualification shares only when the Articles of the company provide for the same. If the article not put any obligation over the directors , it is not mendatory to have shares.
Please correct if i am wrong.
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