As per section 270, qualification shares are not necessary if the AoA does not require any qualification shares however regulation 66 of table A requires atleast 1 share..... Does it means that in every situation Director must hold atleast 1 share or if AoA is silent then only such regulation of table A is applicable??
Plse help friends
check the provision in AOA of ur company. if there is no specific provision, then table A will apply and accordingly one share needs to be acquired.
DEAR DIPESH,
SEC.270 STATES THAT A PERSON INTENDING TO BECOME THE DIRECTOR OF A COMPANY NEEDS TO OBTAIN QIALIFICATION SHARES WITHIN TWO MONTHS OF APPOINTMENT, AS PROVIDED BY THE ARTICLES OF THE COMPANY. IF HE FAILS TO OBTAIN WITHIN THE STIPULATED PERIOD OF TWO MONTHS HE WOULD BE LIABLE TO A FINE OF FIVE THOUSAD RUPEES FOR EVERY DAY DURING WHICH THE DEFAULT CONTINUES.
IT SHOULD BE NOTED THAT ARTICLES CANNOT PROVIDE FOR OBTAINING QUALIFICATION SHARES BEFORE HIS APPOINTMENT AS DIRECTOR - IT IS ONLY WHEN HE BECOMES OR IS APPOINTED AS DIRECTOR OF A COMPANY HE IS REQUIRED TO OBTAIN QUALIFICATION SHARES.
REGARDS..
TANVEER.
DEAR DIPESH,
SEC.270 STATES THAT A PERSON INTENDING TO BECOME THE DIRECTOR OF A COMPANY NEEDS TO OBTAIN QIALIFICATION SHARES WITHIN TWO MONTHS OF APPOINTMENT, AS PROVIDED BY THE ARTICLES OF THE COMPANY. IF HE FAILS TO OBTAIN WITHIN THE STIPULATED PERIOD OF TWO MONTHS HE WOULD BE LIABLE TO A FINE OF FIVE THOUSAD RUPEES FOR EVERY DAY DURING WHICH THE DEFAULT CONTINUES.
IT SHOULD BE NOTED THAT ARTICLES CANNOT PROVIDE FOR OBTAINING QUALIFICATION SHARES BEFORE HIS APPOINTMENT AS DIRECTOR - IT IS ONLY WHEN HE BECOMES OR IS APPOINTED AS DIRECTOR OF A COMPANY HE IS REQUIRED TO OBTAIN QUALIFICATION SHARES.
REGARDS..
TANVEER.
CAclubindia
