MudraMantri (Wantapreneur) (491 Points)
24 September 2010Section 275 of Companies Act stares that a person holding directorship of more than 15 companies of before the commencement of Companies (Amendment) Act 2000 shall within two months from such commencement: choose not more than 15 companies in which he wishes to continue as director and intimete the same to registrar but what if hr does not makes a choice within the said period.
In that Case, How his directorship will be decided?
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 24 September 2010
His 16th directorship will be considered as illegal.
Further fine as per section 279 shall apply.
Any person who holds office, or acts, as a director of more than 15 companies in contravention of the foregoing provisions shall be punishable with fine which may extend to fifty thousand rupees in respect or each of those companies after the first fifteen.
Wait for other opinions.
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17853 Points)
Replied 24 September 2010
Ofcouse section 279 would apply if he did not choose and intimate according to section 275, 276,277 and 278.
Shraddha Shukla
(Corporate law Consultant)
(346 Points)
Replied 24 September 2010
15 doesnt include Directorship in Pvt. Ltd. Companies, Section 25 Companies etc. So you can have an unlimited Directorship in these Companies.
Also when you are Director in more than 15 Companies, then within 15 days, you have to resign from the excess Companies.
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 24 September 2010
Yupp...observation of Ankur and Shraddha is correct. Re-check the list of 16 directorship keeping in view the exclusion list given in section 278.
In other words re-calculate 15 directorship.
Thanks
Archit Goyal
(Learning Professional)
(344 Points)
Replied 24 September 2010
iis it means anybody can hold directorship in 16 or more private companies
Yogesh Shah
(Managing Corporate Finance)
(1051 Points)
Replied 24 September 2010
Yes dude, individual can hold directorship in more than 15 private co.s ....
I would like to share one more thing that - even if some directorships are excluded from 15 directorships (Sec. 278), but when they failed to get in that category, for three months only they will be excluded.
Means, if private co. becomes public co. or license of sec. 25 company is revoked or unlimited co. becomes public ltd. co. or public co. in which such alternate director becomes regular director - after three months such a company will be counted in no. of 15 directorships.
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