Dear All,
I am working in a Pvt Ltd company with a team of around 20-30 employees. I have a query regarding adding a new member to the board of directors. Is it mandatory to give company shares to every new director added to the board? Can we appoint a director without giving them company shares?
From India, Nagpur
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I am working in a Pvt Ltd company with a team of around 20-30 employees. I have a query regarding adding a new member to the board of directors. Is it mandatory to give company shares to every new director added to the board? Can we appoint a director without giving them company shares?
From India, Nagpur
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It is not mandatory to give the share for each & every directors of the company. There are many directors who are not the share holders of the company.
From India, Bangalore
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653From India, Bangalore
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As per the Companies Act, 2013, the requirement of Qualification shares is dispensed with. Currently, every company is regulated under the new Companies Act, 2013. Therefore, even if the Articles of the company have share qualification, they can now appoint a Director without holding any shares. However, various other rules need to be followed in connection with this if the person is to be appointed directly as Director. For instance, a deposit amount of Rs.1,00,000/- (as per company rules) needs to be followed.
From India, Madras
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From India, Madras
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Appointment letter of Company.doc