Chapter 11 - Corporate Law Reporter

Section 166 of Companies Act, 2013 – Duties of Directors

SECTION 166. DUTIES OF DIRECTORS [Effective from 1st April, 2014] (1) Subject to the provisions of this Act, a director of a company shall act in accordance with the articles of the company. (2) A director of a company shall act in good faith in order to promote the objects of the company for the… Read More

Section 165 of Companies Act, 2013 – Number of directorships

SECTION 165. NUMBER OF DIRECTORSHIPS [Effective from 1st April, 2014] (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… Read More

Section 164 of Companies Act, 2013 – Disqualifications for appointment of director

SECTION 164. DISQUALIFICATIONS FOR APPOINTMENT OF DIRECTOR [Effective from 1st April, 2014] (1) A person shall not be eligible for appointment as a director of a company, if— (a) he is of unsound mind and stands so declared by a competent court; (b) he is an undischarged insolvent; (c) he has applied to be adjudicated… Read More

Section 163 of Companies Act, 2013 – Option to adopt principle of proportional representation for appointment of directors

SECTION 163. OPTION TO ADOPT PRINCIPLE OF PROPORTIONAL REPRESENTATION FOR APPOINTMENT OF DIRECTORS [Effective from 12th September, 2013] Notwithstanding anything contained in this Act, the articles of a company may provide for the appointment of not less than two-thirds of the total number of the directors of a company in accordance with the principle of… Read More

Section 162 of Companies Act, 2013 – Appointment of directors to be voted individually

SECTION 162. APPOINTMENT OF DIRECTORS TO BE VOTED INDIVIDUALLY [Effective from 12th September, 2013] EXEMPTIONS Section 162 shall not apply to a private company, vide Notification No. 464(E) dated 5th June, 2015. The above mentioned exception shall be applicable to a private company which has not committed a default in filing its financial statements under… Read More

Section 161 of Companies Act, 2013 – Appointment of additional director, alternate director and nominee director

SECTION 161. APPOINTMENT OF ADDITIONAL DIRECTOR, ALTERNATE DIRECTOR AND NOMINEE DIRECTOR [Effective from 12th September, 2013 except sub-section (2)] [Sub-section (2) effective from 1st April, 2014] (1) The articles of a company may confer on its Board of Directors the power to appoint any person, other than a person who fails to get appointed as… Read More

Section 160 of Companies Act, 2013 – Right of persons other than retiring directors to stand for directorship

SECTION 160. RIGHT OF PERSONS OTHER THAN RETIRING DIRECTORS TO STAND FOR DIRECTORSHIP [Effective from 1st April, 2014] EXEMPTIONS Section 160 shall not apply to a private company, vide Notification No. 464(E) dated 5th June, 2015. The above mentioned exception shall be applicable to a private company which has not committed a default in filing… Read More

Section 159 of Companies Act, 2013 – Punishment for contravention

SECTION 159. PUNISHMENT FOR CONTRAVENTION [Effective from 1st April, 2014] [1] [If any individual or director of a company makes any default in complying with any of the provisions of section 152, section 155 and section 156, such individual or director of the company shall be liable to a penalty which may extend to fifty… Read More

Section 158 of Companies Act, 2013 – Obligation to indicate Director Identification Number

SECTION 158. OBLIGATION TO INDICATE DIRECTOR IDENTIFICATION NUMBER [Effective from 1st April, 2014] Every person or company, while furnishing any return, information or particulars as are required to be furnished under this Act, shall mention the Director Identification Number in such return, information or particulars in case such return, information or particulars relate to the… Read More

Section 157 of Companies Act, 2013 – Company to inform Director Identification Number to Registrar

SECTION 157. COMPANY TO INFORM DIRECTOR IDENTIFICATION NUMBER TO REGISTRAR [Effective from 1st April, 2014] (1) Every company shall, within fifteen days of the receipt of intimation under section 156, furnish the Director Identification Number of all its directors to the Registrar or any other officer or authority as may be specified by the Central… Read More

Section 156 of Companies Act, 2013 – Director to intimate Director Identification Number

SECTION 156. DIRECTOR TO INTIMATE DIRECTOR IDENTIFICATION NUMBER [Effective from 1st April, 2014] Every existing director shall, within one month of the receipt of Director Identification Number from the Central Government, intimate his Director Identification Number to the company or all companies wherein he is a director. Applicable Rules Companies (Appointment and Qualification of Directors)… Read More

Section 155 of Companies Act, 2013 – Prohibition to obtain more than one Director Identification Number

SECTION 155. PROHIBITION TO OBTAIN MORE THAN ONE DIRECTOR IDENTIFICATION NUMBER [Effective from 1st April, 2014] No individual, who has already been allotted a Director Identification Number under section 154, shall apply for, obtain or possess another Director Identification Number. Read More

Section 154 of Companies Act, 2013 – Allotment of Director Identification Number

SECTION 154. ALLOTMENT OF DIRECTOR IDENTIFICATION NUMBER [Effective from 1st April, 2014] The Central Government shall, within one month from the receipt of the application under section 153, allot a Director Identification Number to an applicant in such manner as may be prescribed. Applicable Rules Companies (Appointment and Qualification of Directors) Rules, 2014 [Effective from… Read More