Companies Act Section 151 — Appointment of director elected by small shareholders

CHAPTER XI APPOINTMENT AND QUALIFICATIONS OF DIRECTORS

Commercial / Corporate

Summary

A listed company is allowed to have one director who is chosen by its small shareholders. The exact way this director is elected, along with the terms and conditions of their appointment, will be set out in rules prescribed by the government.

For this section, the term small shareholders refers to a person who holds shares with a total face value of no more than twenty thousand rupees, or any other amount that may be prescribed by the government instead.

Official Text

A listed company may have one director elected by such small shareholders in such manner and with such terms and conditions as may be prescribed.

Explanation.—For the purposes of this section “small shareholders” means a shareholder holding shares of nominal value of not more than twenty thousand rupees or such other sum as may be prescribed.