CS Arjun Rajagopal
(B.com, ACS)
(1056 Points)
Replied 26 April 2016
| Originally posted by : Rajlaxmi Devi | ||
 |
If somebody buys lots of shares of any particular company from BSE / NSE........can he become Director of that company ? .................. or stakeholder of that company ? |  |
It is the discretion of the board to appoint a person as director irrespective of his/her shareholding.
Many of the big investors like Yousuf Ali( Founder of LULU Shopping Mall), is holding directorship in comps like Cochin Airport, Federal Bank, Lakeshore Hospital, Catholic Syrian Bank.
Therefore if you buy shares in bulk you may talk to management to consider your appointment in the board. Any way it is the discretion of the board.
Regards,
Arjun Rajagopal
If one is having 10 Lacs shares of any copany--say Relaince, then he / she can approach to Reliance Board of Directors.
Now, even the Reliance Board of Directors is also agree to accept him / her on the Board as well.
then can the Shareholder's approval is essential ?
Is is mandatory to get the permission from Shareholdes in this regard ?
Does, RoC / Company Law Board / SEBi / BSE / NSE / RBI approve such this in Indian Corporate Scenario ? ?
Please reply. Thanks
CAclubindia
