what are the qualification shares.....?

Question

i known that these are the shares which company reserves to its directors some of few shares on its own cost ........ is it correct....? please tell more about the qualification shares.............

Answer 1

qualifications shares are those shares which directors of the company must hold (if the articles of the company so provide) if they want to become the directors of the said company.

the directors of the company can acquire qualification shares within 2 months after they have been elected as a directors....

pls note that it is not compulsory for evy director to hold qualification shares and they are required to hold these shares only if the articles of the company has such an clause.

morever representative directors (govt. directors, directors appointed by finance inst./ holding co. etc) are exempted from holding qualification shares.

Answer 2

The number of shares one should hold to become a director of the company is known as qualifying shares.

Answer 3

The first answer you got is correct. Comlputerji, please lock it. For further reference please go through Companaies Act 1956/1988