CS Asmita Mehta (CS) (308 Points)
03 April 2009Is small shareholder director required to hold qualification shares (sec.270) ????????
If not which section or rule is applicable ???????
I read in many reputed books (like munish bhandari) that a small shareholder director need not to hold qualification shares but they didn't maintioned any provision regarding same.
Please clearify........
Vaibhav
(CA Practice )
(63 Points)
Replied 03 April 2009
| Originally posted by :nikita | ||
| " | Is small shareholder director required to hold qualification shares (sec.270) ???????? If not which section or rule is applicable ??????? I read in many reputed books (like munish bhandari) that a small shareholder director need not to hold qualification shares but they didn't maintioned any provision regarding same. Please clearify........ |
" |
SSD IS NOT REQUIRED TO HOLD QUALIFICATION SHARES WITH REFERENCE TO THE EXCEPTION CONTAINED IN SEC 270.AND YOU MAY ALSO REFER RULE 58 A AND 58AA FOR FURTHER REFERENCE
VAIBHAV MALHOTRA
CS Asmita Mehta
(CS)
(308 Points)
Replied 03 April 2009
Mr. Vaibhav thanks for replying but there is no exemption under section 270 to SSD and 58A and 58AA is regarding small depositors and not SSD plz first clearify yourself........
sreekanth
(student)
(40 Points)
Replied 03 April 2009
Is small shareholder director required to hold qualification shares (sec.270) ????????
If not which section or rule is applicable ???????
I read in many reputed books (like munish bhandari) that a small shareholder director need not to hold qualification shares but they didn't maintioned any provision regarding same.
Please clearify........
This is the clarification to ur question nikita....
A small share holder need not hold any qualification shares under provisions of Section 270. He is governed by the rules made u/s 252
CS Asmita Mehta
(CS)
(308 Points)
Replied 03 April 2009
yeah i know povisions regarding SSD governed by Sec. 252 and rules made hereunder.
I read whole section and rules also. Nowhere it is given tht SSD is not required to hold qualification shares.
Mr .shreekanth plz read the section and rules first then reply............
Vaibhav
(CA Practice )
(63 Points)
Replied 03 April 2009
| Originally posted by :nikita | ||
| " | Mr. Vaibhav thanks for replying but there is no exemption under section 270 to SSD and 58A and 58AA is regarding small depositors and not SSD plz first clearify yourself........ | " |
FIRST OF ALL.DONT BE OVER CONFIDENT NIKITA .READ SEC 270 CAREFULLY WITH ITS EXCEPTION IN MUNISH BHANDHARI SIR BOOK.
CS Asmita Mehta
(CS)
(308 Points)
Replied 03 April 2009
Mr. vaibhav first thing which i wanna tell you that dont take it otherwise....
now second thing I do agree that this is given in munish bhndari's book (as i wrote in my origanal question). My confusion is that this thing is not give in bare act.
And third thing the munish bhandari book is interpretation of law and rules made thereunder and it is not above bare act......
In a nutshell i wanna know the reason of such exclusion..........
CS Asmita Mehta
(CS)
(308 Points)
Replied 03 April 2009
Mr. ali it is obvious that my question is of condition where article requires to hold qualification shares to all directors.
I wanna know about is there any specific exemption in tht case. Did u get that?????
yes there is exemption to a director appointed by central government on the board of any company u/s 408 of the act need not hold qualification share[sec 408(4).and also there is exemption to nominne directors representing those finacial institution that are established by seprate statute of parliament are not required the qualifiction shares..(eg 30a of idbi act,sec 19a of the uti act)
hope you got the answer......if not plz inform
CS Asmita Mehta
(CS)
(308 Points)
Replied 03 April 2009
Mr ali we are talking about SSD...............
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 06 April 2009
Hi Nitika,
Nobody was up to the mark while giving his answer. I’ll try my best to solve this query.
Let’s discuss about SSD.
Yes you are right. Almost in every book it is mentioned that provisions related to Qualification shares are not applicable to SSD. Munish Bhandari is the best book for law. In fact I use the same book during my CS Final preparation.
Anyways now observe carefully:
Specific provision overrule general provision
Your query is absolutely genuine and in fact it is gray area of law because if article provide for Q.S. then it is also applicable to SSD like any other director. But by virtue of specific SSD Rules we may overrule articles in this case and various eminent also support our view. As far as your exams are concerned you may 100% go ahead with this interpretation.
Looking for more fruitful discussion from your side.
Best Regards Ankur
CS Asmita Mehta
(CS)
(308 Points)
Replied 06 April 2009
Hello Ankur sir i am very much agree with u. I already read SSD rules there are various grounds are given for disqualification of SSD but no one is about qualification share but i thought may be this interpretation is not correct and i wanted to confirm it with all of u but no one got my problem wht acctually i wanted to know.
But u are only person who unterstood my point and u have same view as i have.......
i wanna thank u for this help........
Sanjay
(Tax Consultants)
(74 Points)
Replied 30 April 2009
I want to know about Qualification Shares
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