Question
Mr. X is currently a director in 10 Public Companies. He
is offered a directorship in Y Ltd., which is a Private Company but a subsidiary of a Public Company. Does this appointment violate Section 165?Solution
As per Section 165 of the Companies Act 2013, (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 I. — 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.
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