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Qualification shares

Dipesh Parasrampuria (AUDIT IN CHARGE) (32 Points)

25 August 2012

As per section 270, qualification shares are not necessary if the AoA does not require any qualification shares however regulation 66 of table A requires atleast 1 share..... Does it means that in every situation Director must hold atleast 1 share or if AoA is silent then only such regulation of table A is applicable??

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4 Replies

(Guest)

If article 66 is adopted in your AOA then director has to take qualification shares otherwise not.

Hence it is not necessary to take qualification share and only when article 66 is explicitely adopted then only it is applicable otherwise not.

Regards

sangram ghatge (company secretary in practice) (198 Points)
Replied 25 August 2012

check the provision in AOA of ur company. if there is no specific provision, then table A will apply and accordingly one share needs to be acquired.

Tanveer Md Masood (Indispensable) (361 Points)
Replied 25 August 2012

DEAR DIPESH,

SEC.270 STATES THAT A PERSON INTENDING TO BECOME THE DIRECTOR OF A COMPANY NEEDS TO OBTAIN QIALIFICATION SHARES WITHIN TWO MONTHS OF APPOINTMENT, AS PROVIDED BY THE ARTICLES OF THE COMPANY. IF HE FAILS TO OBTAIN WITHIN THE STIPULATED PERIOD OF TWO MONTHS HE WOULD BE LIABLE TO A FINE OF FIVE THOUSAD RUPEES FOR EVERY DAY DURING WHICH THE DEFAULT CONTINUES.

IT SHOULD BE NOTED THAT ARTICLES CANNOT PROVIDE FOR OBTAINING QUALIFICATION SHARES BEFORE HIS APPOINTMENT AS DIRECTOR - IT IS ONLY WHEN HE BECOMES OR IS APPOINTED AS DIRECTOR OF A COMPANY HE IS REQUIRED TO OBTAIN QUALIFICATION SHARES.

REGARDS..

TANVEER.