Directors

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.".....................................