Small Shareholders..

1)  As per sec. 252 of the companies act it is not mandetory to appoint small shareholer director because the word are used " comapny may appoint........."

But in as per companies  (appointment of small shareholder directors) Rules,2001 if a campany  receives a notice (14 days)  for the appointment of small shareholder director from at least 1/10 of small shareholders than it is mandetory for the company to appoint small shareholder director.

2) Yes  as per provisions of companies act such director can be removed  by the compay uner sec.284 without the consent of small shareholders.

You can think that such removal is highly illogical because this provision vanishes the intention of  this small shareholder directors rules.

 yes i am thinking  that such removal is highly illogical because this provision vanishes the intention of  this small shareholder directors rules.-----but what we can do-------------?

Thanks a lot Gaurav..