RE: whether qualification shares are necessary for a Directo

Pramod Kumar (Querist) 10 June 2010 This query is : Resolved
Dear Sir,

I put following points for your kind consideration and reply:

1. Whether it is necessary to hold qualification shares by a Director in a company under The Companies Act 1956? If not,

2. whether Articles can be amended to delete such provision, If it is provided by Articles to hold such qualification shares by a Director?

The issue is urgent and I soloicit your kind guidance at the earliest,

with Regards,

PRAMOD KUMAR

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DEFENSE ADVOCATE.-firmaction@g (Expert) 10 June 2010
Qualification shares are needed the no can be limited through arles of association.

Girish Vaghani (Expert) 10 June 2010
You have not mentioned whether it is a Pvt. or Public Co.

Requirements of holding share qualification by directors and fixing the time within which the qualification is to be acquired and filing with the Registrar a declaration of his share qualification by each director is not applicable to Pvt. Co.

For Public company, if the articles states for it, then every director is required to obtain his qualification within two months after his qualification.
If articles of the company are silent about qualification share,then there is no need to obtain qualification share.

Heaven 2011 (Expert) 11 June 2010
Section 270 of the Companies Act does not mandate the qualification of shares for the Diector of the company. It is subject to the provision of the Articles of association of the company. The Company (public ltd) may however change its articles to make it mandatory to hold the qualification of shares.