Classification of Directors shareholding
jayesh ahire
(Querist) 07 October 2010
This query is : Resolved
An Non Executive Director who is not independent and he is not the promoter of the Company holds 5% of the paid up capital of the company. Whether his holdings be classified in promoter group or Public shareholdings?
Under what circumstamces his shareholding can be classified in public shareholding??
Ms. Khushnuma Khan
(Expert) 07 October 2010
Independent Direcotr should not hold 2% or more shares, of the company, presently or even in past.
Independent Director means Director who apart from receiving directors remuneration, do not have any maternal/ pecuniary relationship or transaction with the company, its promoters, its management or its subsidiaries, which in judgment of the Board may affect independence of judgment of the Director.
Rgds,
Khushnuma
Ms. Khushnuma Khan
(Expert) 07 October 2010
There are separate categories of shares in a Public Listed Company which may be public or corporate which may furtehr be sub-divided to several other categories hence it is difficult ot categorize the shareholdings unless you have a very sepcific query in respect of the shareholdings.
Rgds,
Khushnuma
Advocate. Arunagiri
(Expert) 08 October 2010
His share holdings will come under the public holding only. You said his an independent director, so he can not be part of promoter group. All the shares which are not part of promoters group will be called public holdings.
Ms. Khushnuma Khan
(Expert) 09 October 2010
It will also be proper to put here that equity shares are normally classified into those carrying voting rights and those without any voting rights. This aspect needs to be evaluated while classifying the shares.
