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Simple English definitions for legal terms
qualifying share
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A quick definition of qualifying share:
A qualifying share is a type of stock that someone buys in order to become a director of a company that requires its directors to be shareholders. It's like a special kind of ticket that lets you be part of the decision-making team for the company. Shares are like pieces of a pie that represent ownership in a company, and a qualifying share is just one type of share that has a specific purpose.
A more thorough explanation:
A qualifying share is a type of share that is purchased by someone in order to become a director of a corporation that requires its directors to be shareholders.
For example, if a person wants to become a director of a corporation that requires its directors to own at least 100 shares of common stock, they would need to purchase 100 qualifying shares to meet this requirement.
This definition illustrates how a qualifying share is a specific type of share that serves a particular purpose, which is to qualify someone to become a director of a corporation. It also shows how owning a certain number of shares can be a requirement for certain positions within a corporation.