swati (article) (56 Points)
16 October 2012There is a line in pratice Manual like this............................... " However, if a notice received from required number of shareholders, it will be mandatory to appoint small shareholders director, otherwise it is discretionary.".....................................
here what is the meaing of the otherwise and discretionary here?.??????????????????/........................
CA Manish
(Job)
(5264 Points)
Replied 16 October 2012
As per Section 252 of the Comapnies Act read with Rule 4 of companies (Appointment of Small Shareholder's Director) Rules, 2001 :-
Appointment of SSD by co. suo moto is not mandatory.
But
Appointment of SSD in case when co receive a valid notice for such appointment then the co is bound to act on such notice.
Therefore if a notice received from required number of shareholders, it will be mandatory to appoint small shareholders director, otherwise it is discretionary.".....................................
CAclubindia
