Query: limit on number of directorship

As everyone know that as per Companies Bill 2011, no person can hold Directorship in more than 20 Companies including Public and Private Ltd Co.

Though the Companies bill has not received the final ascent, however my query is whether a person holding directorship in more than 20 companies will have to resign from the other companies and limit himself to 20 aur the New Provision of Companies Bill  will be applicable for the further new Appointments only. Also please clarify from when and which date the above provisions need to be abide by

 

 

 

Replies (1)

 

Please refer section 165 of the Companies Bill. It clearly states that a person holding directorships in excess of 20, within 1 yr of commencement of the Bill has to choose among the directorships, resign in remaining and accordingly intimate his decision.
Therefore, the said section is applicable not only to new appointments but also existing directors.
 
Further, appended bewow is section 165 (3) of the Comapnies Bill, 2011 for your reference:
 
(3) Any person holding office as director in companies more than the limits as specified in sub-section (1), immediately before the commencement of this Act shall, within a period of one year from such commencement,—
(a) choose not more than the specified limit of those companies, as companies in which he wishes to continue to hold the office of director;
(b) resign his office as director in the other remaining companies; and
(c) intimate the choice made by him under clause (a), to each of the companies in which he was holding the office of director before such commencement and to the Registrar having jurisdiction in respect of each such company.

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