Small shareholders appointment and disqualification

CA Sandeep Kumar (Audit Assistant) (804 Points)

20 December 2010  

dear members, 

as we all know the appointment of small shareholders' director is made in accordance with the Companies (appointment of small shareholders' director) rules, 2001. So it is clear that as regards appointment of such director is concerned, rules prevail over the provisions of the act, as act prescibes for appointment of other directors. 

However the rules as mentioned above also contain disqulification provisions of small shareholders' director which is as contained in section 274 (except for sub clause (g) of sub section 1) 

My query

W.r.t. disqulification of small shareholders' director whether 274(1)(g) of the act apply??? 

Or provisions as in rules prevail???