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Is a director is ought to be a share holder

prabhu (Business) (52 Points)

14 July 2008

Does a person need to be a share holder, for being appointed as a director in a Pvt. Ltd. Company.

also

Does a person need to be a share holder, for being appointed as a Additional director in a Pvt. Ltd. Company.

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3 Replies

Rekha Sharma (Company Secretary) (167 Points)
Replied 14 July 2008

A director need not be a member / shareholder of the company unless the AOA of the company requires that a director must hold certain shares ( Minimum share qualification cluase in the AOA)

vasudha sharma (CA) (28 Points)
Replied 14 July 2008

Act dosen't require a director to hold shares of the company before accepting the appointment. Only if the articles of the company require a director to hold qualification shaes, then he needs to hold the shares of the company