Definition

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Querist : Anonymous

Querist : Anonymous (Querist)

30 January 2012
dear experts,

pls let me knw the provision regarding quorum & definition of qualification shares????

thanks

regards

miss tanveer ahuja

Srirang Mahabhagwat

Srirang Mahabhagwat (Expert)
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30 January 2012 Dear Madam,

As far as the Qualification shares are concerned there is no statutory requirement that a Director compulsorily needs to hold qualification shares unless provided y the Articles of Association of the Company. Hence only if the Articles provide the Director needs to hold the qualification shares.
However if there is a provision for holding qualification shares you need to comply with all the requirements of the Section 270 of the Companies Act. Kindly go through the section.

Please specify your query in respect of Query related to quorum. That is whether a Pvt or Public, Members or Director Meetings etc

Regards,
Srirang

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Srirang Mahabhagwat

Srirang Mahabhagwat (Expert)
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Jiten Gupta

Jiten Gupta (Expert)
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30 January 2012 As per section 270 (Qualification Shares)

Where a public company or a Pvt Company which is Subsidiary of pubic company provides by its AOA that every Director, within 2 Months of his appointment, is required to take qualification Shares of Value of Not more than5000. and Where the Value of single share ismore than5000 then one share only.

Note-

1. Director is required to take qualification shares only when AOA provides so, otherwise not

2. No company can bound by its AOA any Director to take Shares of Nominal value of More than 5000

3. AOA of company can not provide of time limit of less then 2 Months.

Section 270 is not applicable to following Directors

1. Director of Pvt company

2. Alternate Director

3. Director appointed by CG

Srirang Mahabhagwat

Srirang Mahabhagwat (Expert)
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30 January 2012 Thanks Jitendra

Jiten Gupta

Jiten Gupta (Expert)
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30 January 2012 For Quorum related query plz visit following link

https://www.caclubindia.com/experts/annual-general-meeting-877745.asp

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Jiten Gupta

Jiten Gupta (Expert)
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30 January 2012 Plz read 5000 as RS. 5000 in my First Reply..

Regards

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Querist : Anonymous