Director's Share Qualification

Others 793 views 5 replies

Hello Everybody., 

I have some confusion, may be just because of "Literal Interpretation"

Plz let me know,

whether a director shall be liable to vacant office u/s 283

if he qualify the condition of Share Qualification as required by AOA within 2 months as specified u/s 270

but

after 2 months cease to be holder of such qualification share...

As per provision of section 283, a Director shall be liable to vacant office if he does not get registered QS in his name within 2m from the date of appointment...

and Sec 270 states that a director appointed shall obtain QS as specified in AOA not more than such numbers having nominal value more than Rs. 5000 or 1 share in case of Pub Company not having AOA.,

 

There is nothing about maintenance of such Share Qualification....

 

If there is any provision regarding this., please let me know...

 

Thanks in Advance

Replies (5)

You are misinterpreting section 283(1)(a)....kindly focus on the word "HOLD" used in clause (a).

 

A director is reuired to hold QS even after expiry of 2 months initial period and as long as holds the position of director.

 

Thanks

 

QS are always subjected to the AOA of the Company....

Thanks Ankur Sir...

so, the word "obtain" in sub-section (1) shall be read as "hold" by virtue of sub-section (2)..???

ok...

I got it...

Thanks....

Appreciate your quick understanding and zeal for knowledge !!! Keep it up


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