Comment, if in the following cases, the person concerned will be disqualified to be appointed as a director of a public limited company : (e) Prakash holds directorship in a total of 15 companies as on date comprising of
CS Professional · Advanced Company Law and Practice · PYQS · June 2019
Comment, if in the following cases, the person concerned will be disqualified to be appointed as a director of a public limited company : (e) Prakash holds directorship in a total of 15 companies as on date comprising of 9 public companies, 2 private companies which are subsidiaries of a public company and 4 private companies.
Answer & Explanation:
Section 165 provides that the maximum number of companies in which a person can be a director shall not exceed 20 companies in which public companies should not be more than 10. Private companies that are subsidiaries of public companies shall be treated as public companies for this purpose. Accordingly, Prakash, who is a director in 11 public companies shall be disqualified to be so appointed in another public company.
Topics: Company Law
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