JK Scooters Ltd. is a listed company and wants to appoint a small shareholders' directors suo motu. You are being a Company Secretary of the company apprise the managing director on the following points, referring to the

According to Section 151 of the Companies Act, 2013 read with rule 7(1) of the Companies (Appointment and qualifications of Directors) Rules, 2014, a listed company may have one director elected by such small shareholders in such manner and on such terms and conditions as may be prescribed. A listed company, may upon notice of not less than: One thousand small shareholders; or One-tenth of the total number of such shareholders, whichever is lower; have a small shareholders director elected by the small shareholder. A 'Small Shareholder's Director' may be elected voluntarily by any listed company. Thus, a listed company, may, on its own, act to appoint a Small Shareholder's Director. In such a case, no notice from small shareholder(s) is required. The Act has used the expression "may" and not "shall." Hence, it is not mandatory for a listed company to appoint small shareholders' director.