Mr. P is working as Managing Director in ABC limited company. He holds following chairmanship directorship in the following: (a) Whole time director in XYZ limited company. (b) Managing director in KLM limited company. (

Section 203(3) of the Companies Act, provides that a whole-time key managerial personnel shall not hold office in more than one company except in its subsidiary company at the same time. However, third proviso to Section 203(3) of the Companies Act, 2013 provides that a company may appoint or employ a person as its managing director, if he is the managing director or manager of one, and of not more than one, other company and such appointment or employment is made or approved by a resolution passed at a meeting of the Board with the consent of all the directors present at the meeting and of which meeting, and of the resolution to be moved thereat, specific notice has been given to all the directors then in India. In the given case, Mr. P is managing director/whole time director in total 3 companies i.e. ABC Ltd., XYZ Ltd. and KLM Ltd., which is in contravention to the provisions of the Companies Act, 2013. However, in terms of count of directorship, i. Section 165 of the Companies Act, 2013, states that a person shall not hold office as a director, including any alternate directorship, in more than 20 companies at the same time. However, the maximum number of public companies in which a person can be appointed as a director shall not exceed 10. ii. Further, in the case of listed company, the maximum number of directorships is provided in Regulation 17A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which states that a person shall not be a director in more than eight listed entities with effect from April 1, 2019 and in not more than seven listed entities with effect from April 1, 2020. Therefore, in terms of count of directorship, Mr. P being managing director/whole time director in total 3 companies i.e. ABC Ltd., XYZ Ltd. and KLM Ltd, is within the limit of Section 165 of the Companies Act, 2013 and Regulation 17A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as stated above.