10 March 2010
In accordance with Section 252 of Companies Act, 1956, a public (listed or limited)company must have THREE directors and every private company must have at least TWO directors. Every company must have this minimum number of directors at all times during its existence starting from the date of incorporation.
But you have to maintain the combination of board as per clause 49 which is as follows:
Composition of Board
i. The Board of directors of the company shall have an optimum combination of executive and non-executive directors with not less than fifty percent of the board of directors comprising of non-executive directors.
ii. Where the Chairman of the Board is a non-executive director, at least one-third of the Board should comprise of independent directors and in case he is an executive director, at least half of the Board should comprise of independent directors.
Provided that where the non-executive Chairman is a promoter of the company or is related to any promoter or person occupying management positions at the Board level or at one level below the Board, at least one-half of the Board of the company shall consist of independent directors.
CAclubindia
