Qualification Shares

No, only if articles so provide that all have to hold.

Agree with the learned member.

Provisions related to Qualification share are governed by section 270. Further compulsion to obtain Q.S. is dependent on articles of the company. If articles of the company are silent about Q.S. then there is no need to obtain Q.S.

Best Regards

And if Table A is adopted than check whether regulation 66 is excluded if not than QS is required to be held by director.

I agree with Mr. Ankur.

I must add:

As mentioned, QS need are required only if articles permited to do so, both for private company and for public company. For Public company, if the articles states the same, then every director is required to obtain his qualification within two months after his qualification.

As per proviso to section 270 the Act is silent to hold the qualification shares.If the company so, provided in the Articles of Association that in order to become disrectors ofthe company can acquire the shares within 2 months after ha became the directors of the company

Doddamani CA Final

 If articles of the company are silent about Q.S. then there is no need to obtain Q.S.

Nominee directors and directors appointed by government are not required to hold qualification shares.

Originally posted by : kapil abhishek
	can you please explain what is qualification shares?

A share of common stock that must be held in order for someone to be a director of the issuing company. The actual share is no different from any other common shares, the term refers more to the qualification rule.

For More details visit :

https://www.legalserviceindia.com/company%20law/com_6.htm

If AOA is slient about qualification shares then there is no need for it.

thanx Ms poornima for telling me about qualification shares...

By summoning all the provisons of Companies Act 1956 and Table A requirements it concludes that:

1. If the company adopted Table A then as per clause 66 - Minimum one share.

2. If articles provide for more no.s in qualification then as per articles.

3. However the face value of shares holding shall not exceed Rs.5000.00

4.If the face value of one share is more than five thousand rupees, then the qualification share will be one qualification share.

5.Period is 2 months from the date of appointment if director does n't have any holding 

The above provisions are not applicable to companies not having any share capital

Agreed with all the above members...

Qualification shares are only required to be obtain by the directors of the company within 2 months of the appointment, if Articles of the company contain provision regarding the same..

Then it becomes the qualificaiton of the director otherwise not.

Dear Friends If AOA allows then it compulsory to purcahse it

and AOA cant  say for shares more then of Rs. 5000 and where a nominal value of one share is more then 5000 rs then only one share

1) let say Share is of Rs 2600 then also only 1 share because 2 share is of 5200 so only 1 share

2.) one share is of Rs 5500 then also only one share

its only for qualification otherwise Director can purchase and qualification share must be purchased within 2 months from date of appointment.

Dear Kapil

Qualification of Shares is a way for a person to be a director of that company

for example for Doing CS/CA/CWA student must be 12th pass similiary as their is qualification for holding Directorship and its not compulsory for all companies. Its applicable only when AOA say for this.

Regards