Section 16(3) in Companies (Share Capital and Debentures) Rules, 2014
(3)A person shall not be appointed as a trustee to hold such shares, if he-(a)is a director, key managerial personnel or promoter of the company or its holding, subsidiary or associate company or any relative of such director, key managerial personnel or promoter; or(b)beneficially holds ten percent or more of the paid-up share capital of the company.
