CA Rashi Agrawal (Chartered Accountant) (102 Points)
24 November 2011Can a CA who is a Already a "Professional Director" in a company become shareholder of the same company?? Wether this will attract any contravention of Any provision of CA Act?? and if yes then is it possible to Convert him as a "Promoter Director" from Professional Director" to continue as a shareholder??
vishnupriya
(CA Final)
(1418 Points)
Replied 24 November 2011
that will lead to contravention only if the CA acts as an Auditor.
pahuja
(C.A Final Student )
(472 Points)
Replied 24 November 2011
Hi Raashi
In the case of Directorship either a C.A or Any other Person Is requied to have qualification shares as written in companies act 1956 in section 270. i.e not exceeding Rs 5000/- within 2 months from the date of joining.
and
If the same C.A act as an Auditor the C.A found guilty in professional misconduct and if C.A holds Shares of The same company Exceeding Rs 1000 , C.A will Desqualify to act as and auditor as written in companies Act 1956 in Section 226.
In your Case
Director can hold shares upto Rs 5000/-
Thanks and Regards
Suraj Pahuja.
CS MOHIT SALUJA
(PRACTICING CS Jalandhar 9914558709)
(5155 Points)
Replied 28 January 2012
Dear Pahuja, a director is required to hold the qualification shares only when the Articles of the company provide for the same. If the article not put any obligation over the directors , it is not mendatory to have shares.
Please correct if i am wrong.
Excel Mastery Program
CAclubindia
