Qualification Shares

Ankur Garg (Company Secretary and Compliance Officer)   (114773 Points)

28 March 2009  

 

Dear Ajay,

Here is your answer as raised by you through PM.

 

*Section-270 of Companies Act, 1956 talks about Qualification Shares. There is a specific ruling on your query.

Kindly appreciate Open gift can be accepted from Promoters but not secret gift. Accepting Qualification Shares by way of secret gift from the promoters will amount to breach of trust and such director shall have 2 options:

1. Pay for the Qualification Shares to the Promoter.

2. To give up the shares and to vacate the office.

 

Decided case:     Deepsea Fishing Co. VS. Ansell

 

This is all I have to say about your query. Thanks