Maximum No. of Companies in which a person can be MD

What is the maximum no of companies in which a person can become

a. Managing Director, 

b. Director

Replies (3)

Managing director

For private company there is no restriction

For public company not more than 2 without the approval of central government

Director

15 companies excluding :-

private company 

section 25 company 

foreign company 

 

 

 

MD is also a director so if a person is MD in 2 public companies then he can be a director in 13(total 15) other public companies

Originally posted by : Kumar


What is the maximum no of companies in which a person can become

a. Managing Director-----Section 316---To become MD of second company--unanimous approval of board is required. To become MD of more than 2 companies prior approval of central gov. is required. 



b. Director------Section 275 Maximum 15 companies (Also refer section 278)

yes right, but with due respect, this section doesn't restrict managing directorship in private companies 

For unanimous approval* of the board :-if he is seeking second appointment in a public company then an unanimous approval is needed even if the first company(in which he is appointed already) is private or public

*(unanimous approval means all the director present shall vote in favor of the decision and if even one member doesn't vote resolution can't be passed) 

 

 

For govt approval :-for 2 or more public companies qovt approval is needed

and there is no restriction placed by section 316(the section is silent in this case) in case of private company if all the companies are private

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details