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Section 151 of the Companies Act 2013: Appointment of Director Elected by Small Shareholders

SECTION-151 (Appointment of director elected by small shareholders) under CHAPTER-XI (Appointment and Qualification of Directors) of the Companies Act, 2013

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.






Extra Notes for Readers

(1) The Companies Act, 2013 received the assent of the President on the 29th August, 2013 (Published in the Gazette of India, Extraordinary, Part II - Section 1 by Ministry of Law and Justice, Legislative Department on 30th August, 2013) - link


(2) Section 151 of the Companies Act 2013 was notified by MCA Notification S.O. 902(E) dated 26th March 2014 (w.e.f. 1st April 2014) - link

(3) Relevant rule(s) of the Companies (Appointment and Qualification of Directors) Rules, 2014 (w.e.f. 1st April 2014) link
  • Rule 7 - Small shareholders’ director
[Also check amendments, if any, to the Companies (Appointment and Qualification of Directors) Rules, 2014]






This page was last updated on 27th March, 2017.

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