Shareholder right to become a director

This query is : Resolved

Bhagya M G (Querist)
Follow

08 June 2012 In a private company if a shareholder has 25% holding, whether he can claim to be a director on the Board of the company?

Ajay Mishra

Ajay Mishra (Expert)
Follow

08 June 2012 Hi

In case of private company section 257 will not apply and it will totally govern by its articles.

For appointment of director there is no criteria for holding of minimum percentage of shares so it will depend on Board to appoint such person as director or not.

Regards

Message likes : 1 times

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
Follow

08 June 2012 Dear Friend, the appointment of directors in a private company governed by Articles of Association of the private company. Provided that what is not excluded from Table A. There is no such shareholding requirements. Thanks

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

Guest

Guest (Expert)

08 June 2012 To be admitted as director of company, is not right of shareholder holding even 99% shares of the private company.

Message likes : 1 times