Dipen is Director in nine public limited companies, one dormant public limited company and ten private limited companies. Dipen is invited by JKL Ltd. to join as Director. Discuss the relevant provisions of the Companies

The following provisions are contained in Section 165 of the Companies Act, 2013 for number of directorships a person can hold in companies. (1) As per Section 165 (1) of the Companies Act, 2013, after commencement of the Act, no person shall hold office of a director, including any alternate directorship in more than twenty companies at the same time, Provided that maximum number of public companies in which a person can be appointed shall not exceed ten. (2) As per the explanations provided in Section 165(1) of the Companies Act, 2013: for reckoning the limit of public limited companies in which a person can be appointed as director, the directorship in private companies that are either holding or subsidiary company of a public company shall be included. for reckoning the limit of directorships in twenty companies, the directorship in a dormant company shall not be included. In view of the above provisions of Section 165(1) of the Companies Act, 2013 for calculating the directorships held by Mr. Dipen, the directorship held in 1 dormant public limited company shall be excluded. Therefore Mr. Dipen can accept the invitation of JKL Ltd. for directorship and after appointment in JKL Ltd., the directorships held by Mr. Dipen will be within the overall prescribed limit of 20 companies (including not more than 10 Public companies) as indicated under: 10 public limited companies 1 dormant public limited company (excluded from the limit as above) 10 private companies