Basis for Calculation of No of Directorships u/s 278

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Ravi Kumar.S (Querist)
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26 June 2008 Whether directorship in the subsidary company (including foreign subsidary) will be considered for calculating the cealing Limit u/s 278 or not.

I am very greatful if you clarify the same.

thanking you

CA Anand Sarda

CA Anand Sarda (Expert)
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26 June 2008 As per the relevant section, it says while calculating the number of companies for directorship, the following companies should be excluded-
1) A private company which is not a subsidiary of public company.
2) An unlimited company
3) Sec 25 Company
4) A company in which he is only a alternate director.

It is clear that directorship in subsidiary company should be considered for maximum number and as well foreign company membership also.