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Small shareholder director

Indira (CA ) (1381 Points)

19 April 2017

Can a unlistd company appoint a small shareholder director??

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3 Replies

CS Divesh Goyal (Practicing Compnay Secretary) (50535 Points)
Replied 19 April 2017

yes they can appoint but it is not mandatory under section 151

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Indira (CA ) (1381 Points)
Replied 20 April 2017

Thanks for your reply. But generally a director is appointed at general meeting otherwise in case of a additional director or a casual vacancy director. Small shareholder director can be appointed only by small shareholders. So is the appointment valid.

Thanks

Indira K V

Sudhir Todkar (CS Professional) (1021 Points)
Replied 22 April 2017

Hi Indira,

Listed company can co opt (own) Add or by request of small share holders.

Listed company by its own can appoint a small share holder director and he may also act as a independent director if he comply with the provision of section 149(6) and rules made there under.

He can become SSD subject to conditions that he was not disqualified earlier to appoint as a director in that company and he should have DIN and give his concent to act as a SSD.