Qualification Shares???

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Wht are "Qualification Shares"??

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Qualification share under co. act are governed by section 270. The requirement of holding of qualification shares by the Directors is not mandated by the Companies Act, 1956. 

As such if the Articles of Association of a Company do not require a Director to hold any qualification shares, a person can be a Director without being its shareholder. If a director fails to obtain Q.S. u/s 270 then within 2 months then it would be a ground of deemed vacation of office of director u/s 283(1)(a).

 


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