Section 165 (Director cap)

◈Definition

Section 165 of the Companies Act 2013 caps the number of companies in which an individual can simultaneously hold a directorship. The cap is 20 companies in aggregate, of which no more than 10 can be public limited companies. Private companies, OPCs, and Section 8 non-profits are counted within the 20-company cap but do not individually count toward the 10-public cap. Breaching Section 165 attracts a monetary penalty on both the director and the new appointing company.

◉See also

• Director Identification Number(DIN)

  The 8-digit unique identifier assigned to every individual who serves as a director of an Indian company.

• Form DIR-12 (Director Particulars)(DIR-12)

  The form used to notify the ROC of director appointments, cessations, and changes.

⬢Related guide

• Director Identification Number (DIN) — Explained

  Every Indian company director has a unique 8-digit DIN. Here's how it's issued, what it means, and how the Section 165 cap works.