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

As per rule 7(8) of the of the Companies (Appointment and qualifications of Directors) Rules, 2014, a person shall not hold the office of small shareholders' director in more than two companies. If second company is in competitive business or is in conflict with business of the first company, he shall not be appointed in second company.