The Indian Companies Act does not specify any separate qualifications of the directors. It has only been said that only persons can be directors, who are required to take at least one qualifying share and one person can be appointed director of not more than 20 companies.
It is necessary for the operators to possess the following qualifications: (1) To take a qualifying share – Every operator is required to have at least one or the minimum qualification prescribed by the Articles of Association.
(2) Taking shares by transfer – Qualifying shares can also be purchased from the market.
(3) The value of the shares should not exceed ₹5,000 – The value of the operator’s qualifying shares should not exceed ₹5,000. If the value of one share is more than ₹5,000, then only one share will be considered eligible.
(4) Period of holding of Shares If the Director does not take the qualifying shares within two months of his appointment or does not retain the ownership of them during his tenure, his post shall be deemed to be vacant.
(5) Prescribing qualifications in addition to shares – Additional qualifications may also be prescribed for operators in addition to shares, which shall be necessary to fulfill.
(6) Share warrant- The holding of share warrant by the operators shall not be included in the number of qualifying shares.
(7) Directors of private company – There shall be no rules on the operators of private company having qualifying share. Applicable
Only Individual to be Director – No amalgamated institution, association or firm is appointed as a director of a company. Only individuals can be appointed as directors.