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Query about qualification shares

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Ankur

252 Points Posted on 08 April 2013

Hello frineds

Please Help Me to solve the following couple of Problems

(A)

Query on qualification shares Section 270 to 273 of Companies Act, 1956

Suppose a co. XYZ Ltd. Has a director “X” who holds Rs. 5000 amount of shares (nominal value) and later on co. later on by amending its articles increases the amount of qualifications shares to Rs. 25000. Then whether X will be required to increase his qualification shares amount to Rs. 25000? If yes, in what time?

(B)

Can a public Ltd. Co increase the qualification shares amount to more than Rs. 5000 or not in its articles ???? or is this Rs. 5000 the maximum amount beyond which qualification shares amount can never be prescribed in articles????

Thanking in anticipation..

Replies (1)

Guest

270. TIME WITHIN WHICH SHARE QUALIFICATION IS TO BE OBTAINED AND MAXIMUM AMOUNT THEREOF.

(1) Without prejudice to the restrictions imposed by section 266, it shall be the duty of every director who is requiredby the articles of the company to hold a specified share qualification and who is not already qualified in that respect, to obtain his qualification within two months after his appointment as director.

(2) Any provision in the articles of the company (whether made before or after the commencement of this Act) shall be void insofar as it requires a person to hold the qualification shares before his appointment as a director or to obtain them within a shorter time than two months after his appointment as such.

(3) The nominal value of the qualification shares shall not exceed five thousand rupees, or the nominal value of one share where it exceeds five thousand rupees.

(4) For the purpose of any provision in the articles requiring a director to hold a specified share qualification, the bearer of a share warrant shall not be deemed to be the holder of the shares specified in the warrant.

This is as per act so nothing else will apply,,,,as per my view .