Dear Members,
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.
CAclubindia
