Referring to the provisions of the Companies Act, 2013, examine the validity of the following appointments on the Board made by Star Ltd., incorporated on 3rd January 2015: Star Ltd. being an unlisted company having a tu
CS Professional · Advanced Company Law and Practice · PYQS · December 2015
Referring to the provisions of the Companies Act, 2013, examine the validity of the following appointments on the Board made by Star Ltd., incorporated on 3rd January 2015: Star Ltd. being an unlisted company having a turnover of ₹100 crore, appoints Ms. Tanya as the director on 1st February, 2015. Ms. Tanya already holds directorship in ten public companies. She is a whole-time Company Secretary in practice.
Answer & Explanation:
Section 165 of the Companies Act, 2013 regulates the appointment of directors in a company and the number of directorships an individual can hold. Accordingly, a maximum limit on total number of directorships has been fixed at 20 companies including a sub-limit of 10 for public companies, i.e. an individual cannot be a director of more than 10 public companies. Accordingly, Ms. Tanya may not be appointed as director as this would be her 11th public unlisted company.
Topics: Directors
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