Can Rohan continue to hold directorship in all 22 companies after acquisition made by ABC Ltd. ?
CS Executive · Company Law · PYQS · June 2021
Can Rohan continue to hold directorship in all 22 companies after acquisition made by ABC Ltd. ?
Answer & Explanation:
Refer to the explanation provided in the answer to Question 4(a)(i). Upon MNP Pvt. Ltd. becoming subsidiary of ABC Ltd. (a public company) directorship in MNP Pvt. Ltd. shall also be included within the limit of 10 public companies. Accordingly, if Rohan acts as director in more than 10 public companies, then same will be in contravention of Section 165 of the Companies Act, 2013.
Topics: Directors
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