Small shareholder

Mrs.n (CS, LL.B ) (407 Points)

26 July 2012  

Hi,

Small Shareholder means -Shareholders holding   shares of nominal value of  Rs.20000/- or less. (pl .correct me if am wrong)

and AS PER SECTION- 252  those public  companies which are having ---1) Paid up capital  of Rs.5.00 crore or more ---2) 1000  or  more small shareholders

Have to appoint a director as per  The Companies (Appointment of the Small Shareholders Director) Rules, 2001

My query is if any public company fulfilling both above requirement have to mandatorily follow above rule for director or it  is optional .?

pls suggest