Directorship in maxim companies

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 November 2010 Dear Experts,

Pls guide me, in how many companies an indivitual can act as Director.

Pls site the relevant sections of the Companies Act 1956.

Regards,

CA Sanat Pyne

CA Sanat Pyne (Expert)
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11 November 2010 Section 275. No person to be a director of more than fifteen companies
275. No person to be a director of more than 1[fifteen companies]

After the commencement of this Act, no person shall, save as otherwise provided in section 276, hold office at the same time as director in more than 1[fifteen companies].

Section 278. EXCLUSION OF CERTAIN DIRECTORSHIPS FOR THE PURPOSES OF SECTION 275, 276 AND 277.
(1) In calculating, for the purposes of section 275, 276 and 277, the number of companies of which a person may be a director, the following companies shall be excluded, namely :-

(a) a private company which is neither a subsidiary nor a holding company of a public company;

(b) an unlimited company;

(c) an association not carrying on business for profit or which prohibits the payment of a dividend;

(d) a company in which such person is only an alternate director, that is to say, a director who is only qualified to act as such during the absence or incapacity of some other director.

(2) In making the calculation aforesaid, any company referred to in clauses (a), (b) and (c) of sub-section (1) shall be excluded for a period of three months from the date on which the company cases to fall within the purview of those clauses.