Penalty 4 acting as Director widout qualification shares

if the articles provides for holding the qualification shares for being appointed as director, then he should take qualification shares.i hope in your case the articles provide for the same.

in that case, i think the penalty should be under both the sections

First know Company is private or Public as Section 272 is not applicable to Private Company than only Section 283 penalty will be applicable till he continues as Director.

For public Company both the Section 272 & 283 will be applicable i.e. 5500 per day till he continues to act as director after 2 months

However, both the above penalty is applicable only if Director is liable to hold qualification shares as per Articles otherwise not.

agree with jagruti

Originally posted by : Jagruti (CS)
	First know Company is private or Public as Section 272 is not applicable to Private Company than only Section 283 penalty will be applicable till he continues as Director.   For public Company both the Section 272 & 283 will be applicable i.e. 5500 per day till he continues to act as director after 2 months   However, both the above penalty is applicable only if Director is liable to hold qualification shares as per Articles otherwise not.

Agree and the penalty would be counted from the day of expiry of that 2 month period till he continues as director.