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    Question

    Which of the following statements correctly reflects the requirements regarding the maximum number of directorships an individual can hold as per the Companies Act?

    A An individual may serve as a director in a total of up to thirty companies, including any alternate directorships they may hold, with the stipulation that this total count does not specifically limit the number of public companies to a particular number Correct Answer Incorrect Answer
    B The Act stipulates that no person may hold directorships in more than twenty companies concurrently, including any alternate directorships; however, there is a specific limit that applies to public companies, restricting this number to a maximum of ten, irrespective of the overall directorship limit Correct Answer Incorrect Answer
    C An individual is allowed to be a director in up to twenty companies at the same time, including any positions held as an alternate director. Additionally, the number of public companies in which a person can serve is subject to a separate maximum cap of ten, which is explicitly separate from the total number of companies Correct Answer Incorrect Answer
    D The Companies Act imposes a restriction on holding office as a director in no more than twenty companies at once, including any alternate positions. This restriction applies uniformly to all types of companies, and no special limits are imposed specifically on the number of public companies Correct Answer Incorrect Answer
    E A person can hold directorships in up to twenty-five companies, including alternate directorships, and the restriction on public companies is only applicable if they are appointed as the chairman or managing director Correct Answer Incorrect Answer

    Solution

    Section 165. Number of directorships: (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.

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