Ceiling on number of directors in pvt ltd co in co's act 13

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Querist : Anonymous

Querist : Anonymous (Querist)

15 October 2013 I am about to float a pvt ltd company with 18 directors. Please clarify me, whether i can float under the companies act 2013 i.e., whether any ceiling is kept in the act,2013?
Please resolve my query.

Regards.

Ajay Mishra

Ajay Mishra (Expert)
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15 October 2013 Hi

As per section 165 of the new Companies Act, 2013 :

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:
Provided that the maximum number of public companies in which a person can be appointed as a director shall not exceed ten.
Explanation.— For reckoning the limit of public companies in which a person can be appointed as director, directorship in private companies that are either holding or subsidiary company of a public company shall be included.
(2) Subject to the provisions of sub-section (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.

Ajay Mishra

Ajay Mishra (Expert)
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15 October 2013
(3) Any person holding office as director in companies more than the limits as specified in sub-section (1), immediately before the commencement of this Act shall, within a period of one year from such commencement,—
(a) choose not more than the specified limit of those companies, as companies in
which he wishes to continue to hold the office of director;
(b) resign his office as director in the other remaining companies; and
(c) intimate the choice made by him under clause (a), to each of the companies in
which he was holding the office of director before such commencement and to the
Registrar having jurisdiction in respect of each such company.
(4) Any resignation made in pursuance of clause (b) of sub-section (3) shall become
effective immediately on the despatch thereof to the company concerned.
(5) No such person shall act as director in more than the specified number of
companies,—
(a) after despatching the resignation of his office as director or non-executive
director thereof, in pursuance of clause (b) of sub-section (3); or
(b) after the expiry of one year from the commencement of this Act, whichever is earlier.
(6) If a person accepts an appointment as a director in contravention of sub-section (1), he shall be punishable with fine which shall not be less than five thousand rupees but which may extend to twenty-five thousand rupees for every day after the first during which the contravention continues.

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Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2013 Thanks for the info, but I asked whether a pvt co can have 18 directors under the co's act 13.