Directors Qualification Shares

Dear Murli,

Simply amend your articles to insert the clause. Further there is no need to give any additional shares to your directors because all 3 are already holding shares of the company and this holding fulfills the requirement of QS after amendment in Article.

Further section 270 is silent about no. of shares regarding QS so a single share may also constitute QS unless otherwise required by TIIC. Here you have to convince them.

Further Rs. 5000 is maximum limit of investment via QS. If your article say QS is 10 shares and value of one share is Rs. 10 than investment of Rs. 100 (10*10) is sufficient for QS.

This is my personal opinion. You are requested to wait for other expert opinions.

Thanks

Agree with Ankur Sir

Ankur is very much correct. you should proceed

Sec 270 does not apply to private company as per sec 273.

For a private company, the director should obtain the qualification shares within the time limit prescribed in the articles.

for a private company, am not sure if the directors can hold QS over and above the limit prescribed in articles of the company.

please wait until some1 clears the above doubt!

Cheers...

As per Section 273, Section 270 does not apply to Private Companies.

Directors of Pvt. Cos can hold any no. of shares of any value as required  by its articles 

and that too in any time as req. by articles. There is no restriction in any aspect.

Dear Vishal and Saurabh,

You guys are rightly said that by virtue of section 273 provisions of qualification share under section 270 are not applicable to a private company. But on the practical front and in the practical situation posted by Murali Sir this not an excuse to avoid amendment in articles. He cannot quote section 273 to the officials of TIIC.

Thanks

Ofcourse Section 270 and 272 does not apply to Private Company by virtue of Section 273 of the Act.

However, the Articles of a Private Company may provide that the directors are required to obtain shares as qualification shares.

As such section 270 does not apply, the limits of 2 months and Rs. 5000/- would not apply. However, it is suggested to amend the Articles, if insisted by such institution, keeping in vies above 2 months and Rs.5000/- limits.

And as such, all the directos are already holding shares of the Company there is no need to issue shares to them.

Therefore, Yes you Can amend the Articles so that the directors to hold qualification shares of not less than Rs.1000/- (100 shares of Rs.10/- each)

Yes sir you are absolutely right.

A Private company can voluntarily provide for Qualification Sharers through its articles.

Aruna Suresh Mehta

Vs.

Jifcon Tools (P) Limited (CLB 1999)

As per companies act,there is no requirement tohold qualification shares.Suppose if article not provide anything for it so in that case-Regulation 66 of Table A will be applicable.It means,automatically there is implied condition to hold one share in public companies,Isnt it?

Or it is like that when Article instead of silent,specially mentioned that no need to hold qualification shares.Then in that case Table A will not be invoked.