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: Supatra, a Practicing Company Secretary holds d
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: Supatra, a Practicing Company Secretary holds directorship in eight public companies and six private companies. In addition, he also holds alternate directorship in three companies and directorship in three subsidiary companies of Star Ltd.
Answer & Explanation:
While counting the number of directorships in public company, directorship in private companies that are either holding or subsidiary company of a public company shall be included. Alternate directorship shall also be included in the above number. Supatra's directorship is as follows: In 8 Public companies; In 6 private companies; Alternate directorships in 3 companies; 3 subsidiary public companies (subsidiary of Star Limited) Accordingly, Since Supatra already holds 10 directorships in public companies, he cannot be so appointed in the 11th public company. If, he is appointed, he will have to vacate the directorship in one of the companies of his choice.
Topics: Directors
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