Question

The share which a director must buy as a condition for this directorship is called _______________.

• A. Qualification share
  
• B. Equity share
  
• C. Ordinary share
  
• D. none of these
  

Answer 1

The correct option is A Qualification share

Qualification shares are those which a Director is required to hold in order to be eligible as a Director. The Articles of Association of a company generally prescribe for such qualifications.

Equity Share is the portion of the capital of a company which is paid-up by a shareholder. Equity shareholders are the owners of the company.

Ordinary shares indicate the basic equity ownership of the company. They allow the investors to cast their vote, and to receive dividends.