Yogesh Shah (Managing Corporate Finance) (1051 Points)
25 March 2010Hye Folks,
According to Sec. 258 and Sec. 259, PUBLIC CO. or PRIVATE SUBSIDIARY THEREOF can increase no. of directors beyond 12, subject to approval of central govt.
My question is, as this provision is not applicable to independent pvt. Co, how much directors a pvt.
I guess, law is silent on this issue.
As a matter of prudence, no. of directors should be in accordance with nature, business & size thereof. But still, does a pvt.
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 25 March 2010
Your observation is correct. A purely private company can appoint any no. of directors as section 259 is not applicable to a purely pivate company.
Regards
Yogesh Shah
(Managing Corporate Finance)
(1051 Points)
Replied 26 March 2010
Thnx dude for reply !!!
Shashikala Shah
(Practising C S )
(43 Points)
Replied 05 June 2010
Hi friends,
A pvt ltd co can appoint any no of directors with in the limits set by Articles of the co in that behalf.
Shashikal Shah
PCS
Jyoti Aggarwal
(COMPANY SECRETARY)
(336 Points)
Replied 07 June 2010
I think public Co. can raise no. of directors up to 15.
m I correct??
pls clarify that if article of public co. said for more than 15 directors then can it is allowed?
vivek
(CS)
(751 Points)
Replied 07 June 2010
As per section 259 it's 12 not 15 beyond that u will hv to seek approval from CG. 15 is individual limit for holding directorship.
Regards,
Jyoti Aggarwal
(COMPANY SECRETARY)
(336 Points)
Replied 07 June 2010
Yes Mr. Vivek,
M agree with u..
bt my quest is beyon 12 can we increase no. of directors up to unlimited no.
I think no, we can increase only up to 15.
Correct me if m wrong.
Ashish Gupta
(CS & Legal)
(114 Points)
Replied 07 June 2010
Section 259 provides for maximum number of directors a public limited companies as 12, without any CG approval.
However, at the time of incorporation, the public companies can provide maximum number of directors even beyond 12 and such number (in excess of 12) does not require any CG aproval.
In case of any increase in maximum number of directors of a public limited company beyond 12 after incorporation, CG approval is required.
Rgds,
Ashish
CAclubindia
