Amit is having directorship of the following companies : Nature of companies Number of companies Public companies (including 2 dormant companies) 8 Private companies (including 2 subsidiaries of public companies) 10 Alte
CS Executive · Company Law · PYQS · December 2020
Amit is having directorship of the following companies : Nature of companies Number of companies Public companies (including 2 dormant companies) 8 Private companies (including 2 subsidiaries of public companies) 10 Alternate director (in a private company) 1 Section 8 company 1 Indicate how many more directorships Amit can undertake in public or private companies.
Answer & Explanation:
According to Section 165(1) of the Companies Act, 2013, no person, can hold office as a director, including any alternate directorship, in more than twenty companies at the same time. For reckoning the limit of directorships in twenty companies, the directorship in a dormant company is excluded. Further, out of the above twenty companies, the maximum number of Public Companies in which a person can be appointed as a director cannot be more than ten. For reckoning the limit of ten Public Companies, directorship in Private Companies that are either holding or subsidiary company of a Public Company shall also need to be included. In the given case, Amit is holding a directorship in: 8 Public Companies (including 2 Dormant Companies); 10 Private Companies (including 2 subsidiaries of Public Companies); Alternate director (in a Private Company); Section 8 Company Accordingly, in Public Company presently he is holding 8 directorship and in Private Company 9 directorship. Hence, total number of directorships he is already holding is 17 (since, directorship in Section 8 Company is excluded, from reckoning the limit of directorship of 20 companies). Thus, Amit can take up directorship in 2 more Public Companies and 1 more Private Company.
Topics: Directors
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