Consequences of min. no. of directors in pvt. co.

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Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2012 Sec. 252 requires that the minimum no. of directors in a public co. shall be 3.
However, what are the consequences if the no. is reduced below this statutory minimum and the co. carries on business???????

Ajay Mishra

Ajay Mishra (Expert)
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04 August 2012 Hi

In Case the director of the company is less than two or the no. of director fix for the quorum, then the remaining director (continuing director or directors) may act for the purpose of increasing the no. of directors to that fixed for the quorum or summoning a general meeting of the company, but no for other purpose.

Please read Regulation 75 of Table A of Schedule I of the Companies Act, 1956.

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