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Maximum Number of Directorship in Companies

A person is allowed to be the Director of a maximum of 20 Companies simultaneously as per the Companies act, 2013.

Public companies directorship limit: Maximum number of public companies in which a person can be appointed as a director shall not exceed 10.

Notes:
  • Directorship includes alternate directorship;
  • For calculating the limit of Public companies, private companies that are either holding or subsidiary
    company of a public company, shall also be included.
  • Members of a company may, by passing special resolution, specify any lesser number of companies in which a director of the company may act as directors.
Action to be taken by the director after the commencement of the companies act 2013

Any person holding office as director in companies more than the limits specified above (before the commencement of this Act), shall, within a period of 1 year from such commencement, immediately
(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;
(b) resign his office as director in the other remaining companies; and
(c) intimate the choice made by him under clause (a), 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.
 
Effective date of resignationAny resignation made in pursuance of clause (b) mentioned above shall become effective immediately on the despatch thereof to the company concerned.

No such person shall act as director in more than the specified number of companies,—

(i) after despatching the resignation of his office as director or non-executive director thereof, in pursuance of clause (b) mentioned above; or
(ii) after the expiry of 1 year from the commencement of this Act, whichever is earlier.


Penalty/Punishment

If a person accepts an appointment as a director in more than the prescribed  limit, he shall be punishable with fine - not be less than Rs. 5000 which may extend to Rs. 25000 for every day after the first during which the contravention continues.
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