Minority / small shareholder's director
Din Dayal
(Querist) 28 September 2014
This query is : Resolved
As per my understanding , Section 151 of Company Act 2013 , provides for appointment of Minority / small shareholder's director and draft rules give the procedure for the same .
Will this provision also apply to a govt. controlled listed company , which does not have such a post of director in the Article of Association of the company ? .Or shall the company have to amend the Articles to permit this . Kindly clarify .
Regards.
DR.VEDULA GOPINATH
(Expert) 01 October 2014
dear queriest
Sec 151 of companies Act 2013 shall apply to all listed companies irrespective of the
majority of the shares are held by Government or private parties.
When compared to the Articles, companies Act 2013 shall have a greater force for corporate dealings. Thus it is suggested for amendment of articles enabling appointment of minority/small shareholders'director.
dr vedula gopinath
advocate high court and corp.advisor
vgnath@gmail.com m 9848227926
T. Kalaiselvan, Advocate
(Expert) 04 October 2014
Section 151 of the Companies act, 2013 says:
Every listed company may have one director elected by small shareholders in the manner as may be prescribed. In the old act provision for appointment of small shareholder’s director was applicable on public companies having paid-up capital of Rs. 5 crore or more or having 1000 or more small shareholders.
Corresponding section of the act 1956 is 252.
You may also visit section 161of the new act for appointment procedure and other relevant issues on the subject query.
