Question

"Small shareholder" means a shareholder holding shares of nominal value of not more than ___________ or such other sum as may be prescribed.

• A. twenty thousand rupees
• B. ten thousand rupees
• C. fifteen thousand rupees
• D. twenty five thousand rupees

Answer 1

Answer: (A)

twenty thousand rupees

A small shareholder is a person who is holding shares of nominal value amounting to a maximum of Rs 20,000 in a public company. Small shareholders are entitled to elect a director in a listed company. The directors elected by these shareholders will be known as a ‘Small Shareholders Director’.