Provisions in Respect of Number of Directorships
Provisions in respect of number of directorships are as follows:
No person, after the commencement of this Act, shall hold office as a director, including any alternate directorship, in more than twenty companies at the same time. The maximum number of public companies in which a person can be appointed as a director shall not exceed ten. For reckoning the limit of public companies in which a person can, be appointed as a director, directorship in private companies that are either holding or subsidiary company of a public company shall be included.
Subject to the provisions of Section 165 (1), the members of a company may, by special resolution, specify any lesser number of companies in which a director of the company may act as directors.
Any person holding office as director in more than the specified number of companies as specified in Section 165 (1) immediately before the commencement of the Companies Act, 2013 shall, within a period of one year from such commencement, choose not more than the specified limit of companies and resign his office as a director in other companies and intimate his choice to each of the companies in which he was holding the office of director before such commencement and the concerned Registrar of Companies.
If a person accepts an. appointment as a director in contravention of Section 165 (1), he shall be punishable with fine which shall not be less than Rs 5,000 but which may extend to Rs. 25,000 for every day after the first during which the contravention continues.