Companies (Appointment of Small Shareholders Director) Rules 2001

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....l come into force on the date of their publication in the Official Gazette. 2. Definitions:- In these rules unless the context otherwise requires -      (a) "Act" means the Companies Act, 1956 (1 of 1956);      (b) "Small Shareholder" means a shareholder holding shares of nominal value of twenty thousand rupees or less in a public company to which section 252 of the Act applies. 3. Applications:- These rules shall apply to public companies having -      (a) paid-up capital of five crore rupees or more;      (b) one thousand or more small shareholders. 4. Manner of election of small shareholders' director:- (1) A company may act suo-....

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....need not have to retire by rotation. (7) On expiry of his tenure, the same person if so desired by small shareholders, may be elected for an another period of 3 years. (8) Such director shall be treated as director for all other purposes except for appointment as whole time director or managing director. 5. Disqualification:- A person shall not be capable of being appointed as small shareholders' director of a company, if -      (i) he has been found to be of unsound mind by a Court of competent jurisdiction and the finding is in force;      (ii) he is an undischarged insolvent;      (iii) he has applied to be adjudicated as an insolvent and his application is ....