Section 151 · Chapter XI, Appointment and Qualifications of Directors
Appointment of director elected by small shareholders
📚 Law Minded summary
A listed company may have one director elected by its small shareholders — those holding shares of nominal value of twenty thousand rupees or less.
It gives the smallest investors a seat rather than leaving the Board entirely to the large holders who can outvote them.
Section 151. Appointment of director elected by small shareholders
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.
All sections in Chapter XI — Appointment and Qualifications of Directors