QUALIFICATION SHARE

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2010 One of our directors failed to obtain qualification share within the specified limit as per articles of association?

CA Sanat Pyne

CA Sanat Pyne (Expert)
Follow

28 July 2010
a) According to sec 272 ,he shall be liable to fine upto R. 500 for everyday until he stops acting as director.
b) According to section 283(2a) a further penalty of Rs 5000 for each day
c) He will automatically vacate the office u/s 283(1)(a)

Shekar

Shekar (Expert)
Follow

28 July 2010 I agree with SANAT sir..

Upgrade to CAclubindia Pro. Subscribe Now!

Ankur Garg

Ankur Garg (Expert)
Follow

28 July 2010 Consequences are correctly mentioned by experts.

However no need to worry coz u hv 2 options to rectified the positions:

1. Make a back dated allotment of eq. shares.

2. Execute transfer of shares in the back date in favour of new director.

3. You may also execute gift of shares in favour of new director.

Regards

CA Sanat Pyne

CA Sanat Pyne (Expert)
Follow

28 July 2010 YES, THIS CAN ALSO BE DONE.
THANX FOR MENTIONING THE REMIDIES.