Number of Directors Required

Number of Directors Required

Under section 149 (1) of the Companies Act, 2013 states that the requirement of Minimum/ Maximum Number of Directors in a Company

Minimum Number of Directors

a) Public Company: Every Public company shall have a minimum number of 3 directors and

Private company

In case of One Person Company: The requirement of directors is one.

Other Private Companies: The minimum requirement of Directors is two.

Maximum Number of Directors:

A company can appoint maximum 15 fifteen directors out of which one must be resident of India and after passing special resolution in general meeting, the company can appoint more than fifteen directors, for which the approval of Central Government is not required.

Number of directorships:

Under Section 165 of the Companies Act 2013 A person can hold the position of Directorship in different companies up to maximum of 20. The number of directorships in public companies/ private companies that are either holding or subsidiary company of a public company shall be limited to 10. Further the members of a company may restrict above mentioned limit by passing a special resolution.

If a person holds Directorship in more than the limit specified above he/she has to resign the excess, according to his / her choice.

If a person accepts an appointment as a director in excess of above mentioned limit is punishable with a fine of not less than Rs. 5,000 but which may extend to Rs. 25,000 for every day after the first day for the period of Directorship hold by the person.