Maximum number of chairmanships

[vinay bl]

Dear Members,

Section 275 puts a restriction, that a director should not hold directorships of more than 15 companies. Is there any such restrictions for Chairman also (i.e. can a person be chairman of more than one company). If so, what is the maximum number of chairmanship a person can hold.

Kindly enlighten me about the section or case law which speaks about the same.

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Thanks and Regards

Vinay B L

[Lavanya Sharma]

The maximum number of membership hold by the director is 10.

Lavanya Sharma

[Ramaswami Mohan]

15 directorships in Public ltd cos, including pvt co's which are subsidiaries of public ltd cos, is the limit for an individual to hold directorships in a public ltd co; and any number of private ltd cos - so long as these are pure pvt ltd cos and not subsidiaries of public ltd cos.

such an individual can be the chairman for any number of companies where he is a director. there is no restriction.

vies of other members welcome.

regards,

Mohan

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[Bidu Bhusan Dash]

Dear Lavanya,

The maximum number of membership hold by the director is 10, please explain your statement ?

Regards

Bidu

[santosh gangavati]

Dear Vinay,
As per my views there are no restrictions of holdind
chairmanship of the company, However a Director cannot be a Chairman
for more than 5 Committees of the company

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Thanks & Regards

Santosh.G
Somy Jacob & Associates
Practising Company Secretaries
Koramangala,2nd Block
Bangalore.
Ph : 080-25630141
email : sand...@gmail.com

[money verma]

Dear viany,

i agree with santosh...a director cannt be chairman more than 5
committee of the company.

[Jalpa H. Salvi]

i agree with Mr. Santosh!!

Regards,

 

Jalpa H. Salvi

B.Com, ACS, LL.B.
09821431810

09869691458

[sudhir kumar]

Dear Vinay,

 

As per cos act, there is no such limitation as to number of chairmanships by a director.

( Its obvious max of 15 Public Ltd cos and unlimited private Limited cos)

 

But with regard to listed cos there is a limitation which can be found in Clause 49 odf the listing agreement.

On Wed, Jun 29, 2011 at 11:14 AM, Lavanya Sharma <lavanya....@gmail.com> wrote:

[ankit misra]

Dear Mr. Vinay,

I dont think there is any restriction on number of Chairmanship. However, there is restriction on Chairmanship of Committees.

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thanks & regards,

Ankit Misra

Mob. No. 8009968696

[shaila nayak]

I agree... Tere is no restriction on numb of Chairmanship. 

[Bidu Bhusan Dash]

Dear Sudhir,

What is the limitation mentioned with regard to listed cos  in Clause 49 of the listing agreement, please share ?

Regards

Bidu

[vinay bl]

Thanks for all the replies. 

Claluse 49 (iv) (c) ii provides such restriction. For further reference I am reproducing the same:

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. Furthermore it should be a mandatory annual requirement for every director to inform the company about the committee positions he occupies in other companies and notify changes as and when they take place.

Clause 49 puts restriction only on Chairmanship of committees but it does not specify anything about the chairmanship of Companies. 

Therefore I think that a director can become chairman in all the 15 companies. There is no bar. Though practically it is very difficult theoretically it is possible. 

Other members' views are solicited. 

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[sudhir kumar]

Dear Bidu Bushan

 

As requested by you.

 

 

(C)        Other provisions as to Board and Committees

 

(i)       The board shall meet at least four times a year, with a maximum time gap of four months between any two meetings. The minimum information to be made available to the board is given in Annexure– I A.

 

(ii)        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. Furthermore it should be a mandatory annual requirement for every director to inform the company about the committee positions he occupies in other companies and notify changes as and when they take place.

 

Explanation:

1.     For the purpose of considering the limit of the committees on which a director can serve, all public limited companies, whether listed or not, shall be included and all other companies including private limited companies, foreign companies and companies under Section 25 of the Companies Act shall be excluded.

 

2.     For the purpose of reckoning the limit under this sub-clause, Chairmanship/ membership of the Audit Committee and the Shareholders’ Grievance Committee alone shall be considered.

 

Regards

 

CS Sudhir kumar

On Thu, Jun 30, 2011 at 12:32 PM, Bidu Bhusan Dash <bidub...@gmail.com> wrote: