Qualification shares

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chirag goel (Querist)
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09 December 2013 as per section 283(2a) it is written that if director knows about not holding qualification shares then penalty is 5000/day and as per 272 it is said that after expiry of 2 months penalty is 500/day there fore its summary is rs 5500 per day don't really understand the clause

Hitendra Jain

Hitendra Jain (Expert)
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10 December 2013 Sec 283 provides that the office of the director shall vacated due to certain reason including not holding qualification shares.

If a person say on 10th Dec knows that he is not director due to not holding qualification shares and still continue to be director then under sec 283 he shall be liable to fine extended up to 5000 Rs. per day.

Till 9th Feb Sec. 272 shall not come in to picture and the fine would continue to be 5000 Rs. per day.

From 10th Feb onwards Sec 272 also become applicable and the fine shall be

U/S 283 5000 and U/S 272 500 aggregating to Rs. 5500.00