Section 165 of the Companies Act, 2013
Section 165 of the Companies Act, 2013 deals with the number of directorships that a person can hold.
🔹 Section 165 – Number of Directorships
(1) No person shall hold office as a director in more than 20 companies at the same time.
Out of these 20, the maximum number of public companies in which a person can be appointed as a director shall not exceed 10.
For this purpose, private companies that are subsidiaries or holding companies of public companies are counted as public companies.
(2) Any person holding office as director in companies more than the limits specified at the commencement of this section shall:
Choose the companies in which he wishes to continue as a director,
Resign from the others within one year from such commencement.
(3) After making the choice, the person must intimate the choice to each of the concerned companies.
(4) If a person accepts an appointment as a director in violation of this section:
He shall be liable to a penalty of ₹5,000 for each day after the first during which such violation continues,
Subject to a maximum of ₹2 lakh.
🔸 Summary:
| Particulars | Limit |
|---|---|
| Total directorships allowed | 20 companies |
| Public companies (within 20) | Maximum 10 |
| Penalty for violation | ₹5,000 per day (max ₹2,00,000) |
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