Director of the co.

CA Parul Saxena (CA) (8459 Points)

18 March 2013

Can a person become a director of the co, without holding any no.of share of the company?

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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) (8459 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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