28 August 2010
Can HUF become the director of the company under Companies Act. If Yes, then the shares should be held in the name of the HUF or the Karta ?
28 August 2010
Section 253 of the Companies Act,1956 says only individual's can be appointed as directors of a company. This legislative restriction has also been reiterated by the Supreme court in the case of Oriental Metal Pressing Works (P) Ltd V Bhaskar Kashinath Thakoor (1961) 31 Com Cases 143. As such an HUF cannot be appointed as director in a company.
CAclubindia
