{"id":80776,"date":"2023-11-20T16:58:07","date_gmt":"2023-11-20T11:28:07","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?post_type=act&#038;p=80776"},"modified":"2023-11-20T16:58:10","modified_gmt":"2023-11-20T11:28:10","slug":"section-165","status":"publish","type":"act","link":"https:\/\/enterslice.com\/learning\/act\/companies-act-2013\/section-165\/","title":{"rendered":"Section 165. Number Of Directorships"},"content":{"rendered":"\n<p>(1) No person, after the commencement of this Act, shall hold office as a director, including any alternate directorship, in more than twenty companies at the same time:<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>Provided that the maximum number of public companies in which a person can be appointed as a director shall not exceed ten.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><span id='easy-footnote-1-80776' class='easy-footnote-margin-adjust'><\/span><span class='easy-footnote'><a href='https:\/\/enterslice.com\/learning\/act\/companies-act-2013\/section-165\/#easy-footnote-bottom-1-80776' title='The Explanation renumbered as Explanation I thereof by s. 53, ibid. (w.e.f. 9-2-2018).'><sup>1<\/sup><\/a><\/span>[<em>Explanation<\/em>\u00a0I ].&#8211; For reckoning the limit of public companies in which a person can be appointed as director, directorship in private companies that are either holding or subsidiary company of a public company shall be included.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><em><span id='easy-footnote-2-80776' class='easy-footnote-margin-adjust'><\/span><span class='easy-footnote'><a href='https:\/\/enterslice.com\/learning\/act\/companies-act-2013\/section-165\/#easy-footnote-bottom-2-80776' title='Ins. by s. 53, ibid. (w.e.f. 9-2-2018'><sup>2<\/sup><\/a><\/span>[Explanation<\/em>\u00a0II.&#8211; For reckoning the limit of directorships of twenty companies, the directorship in a dormant company shall not be included.]<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>(2) Subject to the provisions of sub-section&nbsp;<em>(1)<\/em>, the members of a company may, by special resolution, specify any lesser number of companies in which a director of the company may act as directors.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>(3) Any person holding office as director in companies more than the limits as specified in sub-section&nbsp;<em>(1)<\/em>, immediately before the commencement of this Act shall, within a period of one year from such commencement,&#8211;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>(a) choose not more than the specified limit of those companies, as companies in which he wishes to continue to hold the office of director;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>(b) resign his office as director in the other remaining companies; and<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>(c) intimate the choice made by him under clause&nbsp;<em>(a)<\/em>, to each of the companies in which he was holding the office of director before such commencement and to the Registrar having jurisdiction in respect of each such company.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>(4) Any resignation made in pursuance of clause&nbsp;<em>(b)<\/em>&nbsp;of sub-section&nbsp;<em>(3)<\/em>&nbsp;shall become effective immediately on the despatch thereof to the company concerned.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>(5) No such person shall act as director in more than the specified number of companies,&#8211;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>(a) after despatching the resignation of his office as director or non-executive director thereof, in pursuance of clause&nbsp;<em>(b)<\/em>&nbsp;of sub-section&nbsp;<em>(3)<\/em>; or<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>(b) after the expiry of one year from the commencement of this Act, whichever is earlier.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><span id='easy-footnote-3-80776' class='easy-footnote-margin-adjust'><\/span><span class='easy-footnote'><a href='https:\/\/enterslice.com\/learning\/act\/companies-act-2013\/section-165\/#easy-footnote-bottom-3-80776' title='Subs. by Act 29 of 2020, s. 33, for sub-section (6) (w.e.f. 21-12-2020).'><sup>3<\/sup><\/a><\/span>\u00a0[(6) If a person accepts an appointment as a director in violation of this section, he shall be liable to a penalty of two thousand rupees for each day after the first during which such violation continues, subject to a maximum of two lakh rupees.].<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n","protected":false},"excerpt":{"rendered":"<p>(1) No person, after the commencement of this Act, shall hold office as a director, including any alternate directorship, in more than twenty companies at the same time: Provided that the maximum number of public companies in which a person can be appointed as a director shall not exceed ten. [Explanation\u00a0I ].&#8211; For reckoning the [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":79763,"parent":79755,"menu_order":0,"template":"","format":"standard","meta":[],"categories":[11445],"tags":[1007],"acf":{"service_id":"215"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Section 165. 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