Maximum number of chairmanship

1460 views 4 replies

Dear Members,



Section 275 puts a restriction, that a person should not hold directorships of more than 15 companies. Is there any such restrictions for Chairman also (i.e. can a person be chairman of more than one company). If so, what is the maximum number of chairmanship a person can hold.


Kindly enlighten me about the section or case law which speaks about the same.



-- 

Thanks and Regards
Vinay B L
Replies (4)

Company Law is silent on this matter.

But Clause 49 of Listing Agreement says A director shall not be a member in more than 10 committees or act as Chairman of more than five committees across all companies in which he is a director.

So we can say in the case of Unlisted co. there is no  bar on Chairmanship across the companies in which concerned person is a director.

Thank you

Ms. Nidhi,

Clause 49 puts restricition only on chairmanship of  committees but does not specifies anything about the chairmanship of Companies. 

Therefore I think a director can become chairman in all the 15 companies wherever he is a director. Though practically it is very difficult, theoriticaly it is possible.

Other members' views are solicited.

Thanks and Regards

Vinay B L

Ya Vinay u r right.

But I want to clear here that the term Chairmanship is not defined anywhere in Companies Act. it is usual term we use, a person can become Non Executive Chairman in all 13/14 Cos as the case may be. but companies Act also say that a person can become MD/Manager in one Co./in special circumstances in 2 Cos.

But practically it is not possible to become chairman of more than 1 co. for a person except that special circumstances as defined in Cos. Act. This is my personal view.

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