The concept of ‘Small shareholders’ Director’ has been ushered in by the Companies (Amendment) Act, 2000, after a long debate at various quarters. The provisions in this behalf have been aimed at, apparently, to lend voice to the small shareholders at the corporate decision making level. However the provisions as finally notified are at variance with the recommendations of the Parliamentary Committee and the Government’s stand. The provisions as finally enacted and the Rules framed by the DCA in regard to election of small shareholders’ director are with full of contradictions and inadequacies. This article subjects the same to microscopic scrutiny. Genesis In order to give representation on the board of directors of companies to small shareholders, the Companies (Amendment) Act, 2000 introduced a new proviso to sub-section (1) of Section 252 of the Companies Act, 1956 (the Act). The proviso reads as under: &l ....