Question

under the companies act a director must possess worth of shares
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Answer 1

Shareholders need at least 1,000 shares or 10 % of the total number of smaller shareholders, whichever is lower.

• As per section 270 of the Companies Act, at the time of appointment of the director, it may be required by the company a minimum holding of shares within the time limit prescribed.
• The need of these small numbers of shares by the director is referred to as share qualification.

• If at the time of his appointment the directors do not hold the share qualification, then he must request them within two months of his appointment.