CS Arvind meena (Corporate Law Consultant) (174 Points)
06 October 2012
CA Manish
(Job)
(5264 Points)
Replied 06 October 2012
Yes it is valid because of this clause in the article none of the provisions of the companies act which are applicable to a pvt co get voilated.
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 06 October 2012
| Originally posted by : CA Manish Malu | ||
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Yes it is valid because of this clause in the article none of the provisions of the companies act which are applicable to a pvt co get voilated. |
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AGREED.
Tanveer Md Masood
(Indispensable)
(361 Points)
Replied 06 October 2012
THE PROVISION SHOULD HAVE BEEN - "THE DIRECTOR MUST OBTAIN QUALIFICATION SHARES WITHIN 2 MONTHS OF BECOMING THE DIRECTOR OF THE COMPANY FAILING WHICH HE W OULD VACATE HIS OFFICE.".
REGARDS...
TANVEER MD MASOOD,
CALCUTTA
8296849552
Gourav Kapoor
(Service)
(30 Points)
Replied 06 October 2012
Dear Mr.Arvind Meena
As per Section 274 (3) of the Companies Act, 1956, A Private Limited, which is not a subsidiary of a public Company may, by its articles, provide that a person shall be disqualified for appointment as director on any grounds in addition to those sspecified in Section 274(1)(a) to (g).
From the above, it is cleared that a Private Limited compnay can incorporate in its Article of Association any additional qualification for the appointment of Director.
U/s 270 of the Companies Act, 1956, deals with the TIME LIMIT for obtaining of Qualification Share - i.e. 2 months after his appointment as Director.
Quontum of Qualification Shares : Section 270(3) states that "Nominal Value of the Qualifcation shares shall not exeed Five Thousand rupees, or the nominal velue of one share where it exceeds five thousand rupees."
Therefore, the additional qualification in your article of association is valid.
Regards,
Gourav Kapoor
CAclubindia
