Small shareholder

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

 

 

 

Replies (1)

Dear Ms. Joshi,

 

Section 252 says 'MAY' appoint small shareholders' director in terms of the rules.

as per my understanding if the company fulfilling the criteria wants to appoint an SSD then it has to mandatorily adhere to the rules. other companies may not be required to follow the rules.

 

CA ANKIT

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