The Companies Act, 1956
If, after the expiry of the said period of two months, any person acts as a director of the company when he does not hold the qualification shares referred to in section 270, he shall be punishable with fine which may extend to 1[five hundred rupees] for every day between such expiry and the last day on which he acted as a director.
1. Subs. by Act 53 of 2000, sec. 131, for “fifty rupees” (w.e.f. 13-12-2000).