[Notification Date: 26.03.2014; Effective from: 01.04.2014]

Section 151- Appointment of director elected by small shareholders. [Corresponds to Section 252, of the Companies Act, 1956]; [Relevant Rule:7 of The Companies (Appointment and Qualification of Directors) Rules, 2014]

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 - [Rule 7].

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.

Section 252 Minimum number of directors.

(1) Every public company (other than a public company which has become such by virtue of section 43A) shall have at least three directors:

Provided that a public company having,—

(a) a paid-up capital of five crore rupees or more;

(b) one thousand or more small shareholders,

may have a director elected by such small shareholders in the manner as may be prescribed.

Explanation.—For the purposes of this sub-section, “small shareholders” means a shareholder holding shares of nominal value of twenty thousand rupees or less in a public company to which this section applies.

(2) Every other company shall have at least two directors

(3)The directors of a company collectively are referred to in this Act as the “Board of directors” or “Board”.