Max. number of boards a Director can hold
This query is : Resolved
20 March 2024
https://youtube.com/shorts/40Bzx00r-A8?si=s0bbDw85P_QNq77p
How can Sandeep Toshniwal hold board of 75 listed companies, when the maximum limit is 10 in case of public companies?
How can Sandeep Toshniwal hold board of 75 listed companies, when the maximum limit is 10 in case of public companies?
09 July 2024
The maximum number of boards a director can hold in India is governed by the provisions of the Companies Act, 2013. Here are the key points regarding the maximum directorships:
1. **Public Companies**: A person can hold a maximum of 20 directorships in public companies, including both listed and unlisted companies. This limit can be extended up to 25 directorships if at least one of the directorships is in a dormant company.
2. **Private Companies**: There is no specific limit on the number of directorships a person can hold in private companies. However, it is essential to ensure that the director can devote sufficient time and attention to the affairs of each company they are a director of.
3. **Section 8 Companies (Non-profit Companies)**: Directors can hold directorships in these companies in addition to the limit applicable to other types of companies.
4. **Additional Roles**: In addition to being a director, an individual can also hold other roles such as managing director, whole-time director, independent director, etc. Each of these roles may have separate eligibility and limits as per the Companies Act.
5. **Resignation and New Appointments**: Directors must ensure they comply with the procedure for resigning from directorships and are aware of any restrictions under the law or the company's Articles of Association.
It's important for directors to balance their commitments across various boards to ensure effective governance and fulfill their fiduciary duties adequately.
1. **Public Companies**: A person can hold a maximum of 20 directorships in public companies, including both listed and unlisted companies. This limit can be extended up to 25 directorships if at least one of the directorships is in a dormant company.
2. **Private Companies**: There is no specific limit on the number of directorships a person can hold in private companies. However, it is essential to ensure that the director can devote sufficient time and attention to the affairs of each company they are a director of.
3. **Section 8 Companies (Non-profit Companies)**: Directors can hold directorships in these companies in addition to the limit applicable to other types of companies.
4. **Additional Roles**: In addition to being a director, an individual can also hold other roles such as managing director, whole-time director, independent director, etc. Each of these roles may have separate eligibility and limits as per the Companies Act.
5. **Resignation and New Appointments**: Directors must ensure they comply with the procedure for resigning from directorships and are aware of any restrictions under the law or the company's Articles of Association.
It's important for directors to balance their commitments across various boards to ensure effective governance and fulfill their fiduciary duties adequately.
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