TMI BlogCompanies (Appointment of Small Shareholders Director) Rules 2001X X X X Extracts X X X X X X X X Extracts X X X X ..... 168(E). - In exercise of the powers conferred by section 642 read with section 252 of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules, namely:- 1. Short title and Commencement:- (1) These rules may be called the Companies (Appointment of the Small Shareholders' Director) Rules, 2001. (2) They shall come into force on the date of their publicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve proposed name of a person who shall also be a small shareholder of the company. (2) Small shareholders intending to propose a person shall leave a notice of their intention with the company at least 14 days before the meeting under the signature of at least 100 small shareholders specifying name, address, shares held and folio number and particulars of share with differential rights as to di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mum period of 3 years subject to meeting the requirement of provisions of Companies Act except that he need not have to retire by rotation. (7) On expiry of his tenure, the same person if so desired by small shareholders, may be elected for an another period of 3 years. (8) Such director shall be treated as director for all other purposes except for appointment as whole time director or managi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the last day fixed for the payment of the call; or (vi) an order disqualifying him for appointment as director has been passed by a Court in pursuance of section 203 and is in force, unless the leave of the Court has been obtained for his appointment in pursuance of that section. 6. Vacation of office:- A person appointed as small shareholders' director shall have to vacate the off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , or any guarantee or security for a loan, from the company in contravention of section 295; (vi) he acts in contravention of section 299; (vii) he becomes disqualified by an order of Court under section 203; (viii) he is removed in pursuance of section 284; 7. Restriction on number of directorship:- No person shall hold office at the same time as small shareholders' dir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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