Dear Members
XYZ Private Limited had approached TIIC (a govt of tamilnadu financial institution) for term loan and same has been sanctioned. One of the condition imposed by TIIC is the Articles of Association has to be amended in such a manner that the "Directors of the company should hold Qualification Shares".
At present there are three directors in the company
(1) Promoter Director is holding substantial holding in the company
(2) Other two directors are already holding 100 shares each.
My query is as follows:
(1) Can we amend the articles for the directors to hold qualification shares of not less than Rs.1000/- (100 shares of Rs.10/- each) - (PLEASE PROVIDE ME WITH A SAMPLE OF THE ARTICLE TO BE INCLUDED IN THE ARTICLES OF ASSOCIATION)
(2) Is it enough if the Directors hold 100 shares of Rs.10/- each
(3) Should they hold 500 shares of Rs.10/- each aggregating to Rs.5000/- (Section 270 prescribes Rs.5000/- as qualification shares)
Please clarify
Muralidharan
CAclubindia
