Qualification Shares ...Query?

Face value is to be considered.... Nominal Value means face value

Here in this Case, nominal value means Face Value, and here in any case market value is not considered, for Qualification shares.

agree with all of the above........

Hi. Nominal value means face value. It is no case means market value or even paid up value. It is the face value which is used for the purpose of calculation of qualification shares.

Hello,

In your case director has to buy maximum of 5 shares of 1000 each to maintain the compliance of section 270. Try and understand the logic behind using Rs. 5000 in section 270.

Rs. 5000 cannot be face value of one share. Hope now you can understand the intention of law.

Best Regards

To  Ankur Sir,

               Sir if u read my example i ve mentioned face value as Rs10 each .As answered by all people here we should consider Face value/nominal value.thus i think it should be 500shares of 10 each not 5 shares of 1000each(as mentioned by u) or in other words the director can buy maximum of 500 shares irrespective of market price.Please correct me if i ve mistaken .

Best Regards.

Originally posted by : Chartered Accountant Student
	To  Ankur Sir,                Sir if u read my example i ve mentioned face value as Rs10 each .As answered by all people here we should consider Face value/nominal value.thus i think it should be 500shares of 10 each not 5 shares of 1000each(as mentioned by u) or in other words the director can buy maximum of 500 shares irrespective of market price.Please correct me if i ve mistaken . Best Regards.

You are right as concept kisi ka bhi hil sakta hain.

I need to re-analyse my answer keeping in view the answers of other learned members. So i'll get back to you as early as possible.

Thanks

Ok  sir ill be waiting..

Thanx.

Dear Friends

Yes their is rule for acquiring shares for qualification of shares is maximum of shares of rs 5000/- or if amount is higher then only one share or if two shares are making value is rs more than 5000 then also 1 share like 

Price of one share is 2600 then only one share.

and Nominal Value is Face Value

Regards

@ Nithin Grover,

  Considering my example given wats the answer?ur post has again confused me.

Best Regards