Q: How many maximum directors are permitted in Private and Public Company ?

Ans: According to section 165 of companies act, 2013, a person can not act as a director (any type) of more than 20 companies at the same time. This number can ,although be minimized by a company with respect to its own director by passing a special resolution.  


Section 165(1): 
No person, after the commencement of this Act, shall hold office as a director , including any alternate directorship, in more than twenty companies at the same time: Provided that the maximum number of public companies in which a person can be appointed as a director shall not exceed ten.

165(2) Subject to the provisions of sub-section (1), the members of a company may, by special resolution, specify any lesser number of companies in which a director of the company may act as directors. 

165(3) Any person holding office as director in companies more than the limits as specified in sub-section (1), immediately before the commencement of this Act shall, within a period of one year from such commencement,— (a) choose not more than the specified limit of those companies, as companies in which he wishes to continue to hold the office of director; (b) resign his office as director in the other remaining companies; and (c) intimate the choice made by him under clause (a), to each of the companies in which he was holding the office of director before such commencement and to the Registrar having jurisdiction in respect of each such company.

Section 165 says: (1) No person, after the commencement of this Act, shall hold office as a director , including any alternate directorship, in more than twenty companies at the same time: Provided that the maximum number of public companies in which a person can be appointed as a director shall not exceed ten.

Read more at: https://taxguru.in/company-law/restriction-number-directorships-section-165.html
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Section 165 says: (1) No person, after the commencement of this Act, shall hold office as a director , including any alternate directorship, in more than twenty companies at the same time: Provided that the maximum number of public companies in which a person can be appointed as a director shall not exceed ten.

Read more at: https://taxguru.in/company-law/restriction-number-directorships-section-165.html
Copyright © Taxguru.in

This has been backed by penalty under the section as well. 

(1) No person, after the commencement of this Act, shall hold office as a director , including any alternate directorship, in more than twenty companies at the same time: Provided that the maximum number of public companies in which a person can be appointed as a director shall not exceed ten.

Read more at: https://taxguru.in/company-law/restriction-number-directorships-section-165.html
Copyright © Taxguru.in



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