qualifying no. of shares for a director in a Pvt. ltd. Co.

Mandip nathji (Querist) 09 March 2011 This query is : Resolved
As per sec 270 of companies Act a director has to subscribe for qualifying shares, which is at least one share or as may be defined in articles. but this clause does not apply to private co.
Does it mean that the director need not to subscribe any share or at least one share is compulsory?

Follow Query

Report Abuse

A V Vishal (Expert) 09 March 2011
PLEASE REFER THE ARTICLES OF ASSOCIATION OF THE COMPANY ABOUT THE QUALIFICATION SHARES, GENERALLY CO'S PUT A CLAUSE THAT THERE IS NO REQUIREMENT OF QUALIFICATION SHARE IN CASE OF PRIVATE LTD CO.

A V Vishal (Expert) 10 March 2011
If the articles is silent then Sch. I Table A Regulation 66 THE FIRST SCHEDULE [See sections 2(2), 14, 28(1), 29 and 223]will apply.

A REGULATIONS FOR MANAGEMENT OF A COMPANY LIMITED BY SHARES
66 BOARD OF DIRECTORS
The qualification of a director shall be the holding of atleast one share in the company.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now