June 2023

Duties of Directors (1) Subject to the provisions of this Act, a director of a company shall act in accordance with the articles of the company. (2) A director of a company shall act in good faith in order to promote the objects of the company for the benefit of its members as a whole, and in the best interests of the company, its employees, the shareholders, the community […]

Number of Directorships Under Section 165 of The Companies Act, 2013, there are rules regarding the maximum number of directorships a person can hold in various companies. Here’s a breakdown of the key points: 1) Limit on Directorships: According to this section, no individual can serve as a director in more than twenty companies simultaneously. However,

Disqualifications for Appointment of Director (1) A person shall not be eligible for appointment as a director of a company, if — (a) he is of unsound mind and stands so declared by a competent court; (b) he is an undischarged insolvent; (c) he has applied to be adjudicated as an insolvent and his application is pending; (d)

Option to Adopt Principle of Proportional Representation for Appointment of Directors  Notwithstanding anything contained in this Act, the articles of a company may provide for the appointment of not less than two-thirds of the total number of the Directors of a company in accordance with the principle of proportional representation, whether by the single transferable vote or by a system of

Appointment of Directors to be Voted Individually (1) At a general meeting of a company, a motion for the appointment of two or more persons as Directors of the company by a single resolution shall not be moved unless a proposal to move such a motion has first been agreed to at the meeting without any vote

Appointment of Additional Director, Alternate Director and Nominee Director (1) The articles of a company may confer on its Board of Directors the power to appoint any person, other than a person who fails to get appointed as a director in a general meeting, as an Additional Director at any time who shall hold office up to the date of the next annual general meeting

Right of Persons Other than retiring Directors to Stand for Directorship (1) A person who is not a retiring director in terms of section 152 shall, subject to the provisions of this Act, be eligible for appointment to the office of a director at any general meeting, if he, or some member intending to propose him as a director, has, not

Penalty for Default of Certain Provisions [If any individual or director of a company makes any default in complying with any of the provisions of section 152, section 155 and section 156, such individual or director of the company shall be liable to a penalty which may extend to fifty thousand rupees and where the default is a continuing one, with a further penalty which

Obligation to Indicate Director Identification Number Every person or company, while furnishing any return, information or particulars as are required to be furnished under this Act, shall mention the Director Identification Number in such return, information or particulars in case such return, information or particulars relate to the director or contain any reference of any director.