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Five points regarding directorship of a section 25 company

Posted By admin on December 25, 2013 No Comments
  • Section 25 company if formed as a private limited company, requires atleast two directors and if formed as a public limited company, then requires atleast three directors.
    As per Section 275 of Companies Act,1956,a person can’t become director of more than 15 companies, this limit doesn’tinclude directorship of private limited companies and Section 25 companies.
  • Under section 259 a public company is not allowed to increase the number of it directors beyond the permissible limits under its articles without the approval of Central Government provided such increase results in total number of directors to go beyond twelve. But Section 25 Companies are exempted from this section and are thus free to increase the number of its directors without seeking approval of central government.
  • Filing of Consent for Directorship:A person seeking appointment as director for the first time of Section 25,company needn’t file his consent in advance for working as a director if appointed.
  • For Section 25 companies also, Section 274(1)(g) applies relating to disqualification of directors.

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