Can a person become a director of the co, without holding any no.of share of the company?
3 Replies
Ankit
(CA, CS)
(3064 Points)
Replied 18 March 2013
Yes Parul,
a person can become a director of a company without holding any shares of that company. there is no such binding in the companies act.
however, if the aoa of the company requires hoding of qualification shares, then he has to acquire the shares..
CA Parul Saxena
(CA)
(8488 Points)
Replied 18 March 2013
Thanks Ankit....1 more thing.....if the director doesn't hold any shares of the co.then the co.can pay Remuneration to such a Director?
Ankit
(CA, CS)
(3064 Points)
Replied 18 March 2013
you are welcome Parul,
yes the company can pay remunertion to the director...
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