Appointment of DIrectors

This query is : Resolved

B Vijaya (Querist)
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11 November 2009 A Private ltd.company wants to appoint a director, is it compulsory for him to hold shares in the company

Satish

Satish (Expert)
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11 November 2009 No its not compulsory to hold shares for a Director...in PRivate Limited Company...

Guest

Guest (Expert)

11 November 2009 No it is not. But Articles provide for holding of share by director then do accordingly.

See clause of director in article.

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Ankur Garg

Ankur Garg (Expert)
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11 November 2009 No it is not mandatory for any kind of director in any kind of company.

However a public company can provide through articles for qualification share under section 270. In this case it would be mandatory for such director of public company to obtain qualification share with in 2 month of his appointment. Otherwise his office shall be deemed as vacated u/s 283(1)(a).

Regards

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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11 November 2009 SEC 270 to 273 is not applicable for private companies. But Articles provide for Qualification share for director then do accordingly.
SEC.270 to 272 are applicable only for public co.