directorship in both public and PVT

Holding of directorships in companies regulated by companies act, 1956. A person can be a director of both private and public companies. He can hold directorships up to 15 companies in public limited companies. There is no bar in private companies

 

satish

Hi Mr. Kumar,

 

Thank you very much for that.

BR

Mike

Dear Mike,

Please look in section 275 of the Companies Act, 1956.

A person can be a director in a public limited company as well as in a private limited company. However, as per section 275 of the Companies Act, 1956 a person cannot be a director in more than 15 public limited companies(including private limited companies which are a subsidiary of a public limited company).

There is no such bar in case of private limited companies ( i.e a company which is neither a subsidiary nor a holding company of a public limited company) which means that a person can be a director in any number of pure private companies.

Further, for calculating the said number of 15 companies, the following companies should not be taken in to account:

(i)companies in which the person is appointed as an alternate director;
(ii) An association not carrying on business for profit or which prohibits payment of dividend;
(iii) An unlimited Company

Regards

Archit Sood
BCom ACS LLB.