Company Law Surprise - A Common Director Trap

Sabhi know ki, according to Section 152 of Companies Act, a director can't hold more than 20% of shares in only one company. But, what we didn't learn from our textbooks is that this 20% limit is applicable on paid-up value of shares, not on the nominal or face value. So, if a company has Rs 10 lakh face value shares but only Rs 50,000 paid-up capital, then technically, a director can hold up to 50,000 shares without violating Section 152. But, it's a common trap where people get into trouble for holding more shares due to ignorance about the difference between face and paid-up value. It's a crucial concept for corporate lawyers and students to grasp.