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Managing director

arti mehta (Article) (70 Points)

09 April 2011  

Can a Person who isDirector in 15 Companies hold the post of Chairman in other companies?


 7 Replies

CA Sandeep Kumar (Audit Assistant) (804 Points)
Replied 09 April 2011

I think yes. I am not very sure. But will other company appoint only as Chairman? There are few provisions in listing agreement.

Dipak Singh ( company secretary) (58 Points)
Replied 09 April 2011

Dear Sunny,

yes, I am also concerned that how any one can be appointed only as Chairman. as far as my knowlwdge is Concern the Chairman must be part of Board of Directors i.e Director, MD,WTD.

 

Correct me if i am wrong.

reards ,

Dipak Singh

CA Sandeep Kumar (Audit Assistant) (804 Points)
Replied 09 April 2011

Hi Dipak, 

I do agree.. Usually one among the Board is elected as a chairman. haven't heard of a chairman being non-director. As the saying goes, 'Name does not matter, but functions do matter'' the chairman as pointed out above will be liable for his acts. 

CS Ankur Srivastava (Company Secretary & Compliance Officer)   (17821 Points)
Replied 09 April 2011

He can not be so appointed.


He has to leave one of the directorship. Because the chairman is elected among the Board of Dirctors. That means he should be the Board Member and as such he is already director in 15 companies he has to leave one of the company.

3 Like

SIDHARTH DHIR (senior articled assistant)   (623 Points)
Replied 10 April 2011

Originally posted by : CS Ankur Srivastava

He can not be so appointed.





He has to leave one of the directorship. Because the chairman is elected among the Board of Dirctors. That means he should be the Board Member and as such he is already director in 15 companies he has to leave one of the company.
 

G.senthil kumar (Audit Assistant) (23 Points)
Replied 11 April 2011

I agree with CS Ankur srivastava's answer.

CS GK Murty (Company Secretary) (225 Points)
Replied 12 April 2011

Please do remember, the stipulation set by section 278 for the purpose of calculating the number of directorships i.e. 15. Private cos which are not subidiary of a public ltd. cos and the cos in which he is an alternative director etc.


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