Question
As per SEBI (LODR) Regulations, 2015, what is the
maximum number of listed companies in which an individual can serve as a director (effective from April 1, 2020)?Solution
The rules governing the maximum number of directorships are as follows: • An individual can hold directorships in a maximum of 20 companies overall. • Out of these, not more than 10 can be in public companies. • Further, under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, based on the Uday Kotak Committee recommendations, the cap for directorships in listed companies was restricted to 7, effective April 1, 2020 (for the top 500 listed entities by market capitalization). This regulation ensures better governance, accountability, and prevents over-boarding by directors in multiple listed firms.
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