SMALL SHARE HOLDER DIRECTOR

                                                  SMALL SHARE HOLDER DIRECTOR

                                                         SECTION 151 OF COM. ACT 2013

Eligible company:-    Listed company.

No of small share holder director in a company:-   Only one.

 Following person shall give notice to the company for appointment of small shareholder:-

1.       1000 small shareholder.

             Or

2.       1/10 of the total number of small shareholder.

(Whichever is lower)

3.       The company by suo motu.

The person who will be eligible to be appointed to be small shareholder director:

1.       Small shareholder.

2.       Any other person.

Status of small shareholder director:

                                                                          The small shareholder director is considered as independent director subject to condition 149(6),(7).

Procedure of appointment

1.       A notice along with a statement shall be sent to the company at least 14 days before the meetting.

2.       The statement shall be signed by the person who is proposed to be appointed as a small shareholder director with the following details:

1.       The DIN.

2.       He is not disqualified to become a director under the act.

3.       His consent to act as a director.

Period of appointment:

1.       For a continuous period of 3 years.

2.       He is not eligible for reappointment.

3.       Retiring director shall not be eligible for reappointment.

4.       Cooling period 3 years.

5.       Such director shall not be liable to retire by rotation.

Maximum number of directorship:

                                                                       Two company such two company shall not be competing with each other.

               

 Small shareholder:

                                                Who hold share of nominal value of not more than Rs 20000 or such other sum as may be prescribed.