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    Can Private Company only have Additional Director on its Board ??

    Posted By : KAMAL / Published on : 29-Sep-2022 09:24 AM / View : 225 / Comment : 1

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    If in Private Company there are only two Additional Directors, that will be sufficient for considering BOD ?
    Read more on : director board additional have company only private

    • As per the Companies Act, 2013, a private limited company must have a minimum of two directors and a maximum of fifteen directors on its board. The board of directors (BOD) of a private limited company is responsible for managing the affairs of the company, making decisions, and ensuring compliance with the law.

      If a private limited company has only two directors, it is technically compliant with the provisions of the Companies Act, 2013. However, having only two directors may not be sufficient for effective decision-making, as the board requires a quorum to conduct meetings and pass resolutions.

      As per the Act, the quorum for a board meeting of a private limited company is one-third of the total number of directors, or two directors, whichever is higher. Hence, in a private limited company with only two directors, both directors must be present for a board meeting to be valid.

      To ensure effective decision-making and avoid any disruptions due to the absence of one director, it is advisable for a private limited company to have more than two directors on its board. While two directors are the minimum requirement, having more directors can bring in diverse perspectives, skills, and experience, which can be beneficial for the company.

      In summary, while having two additional directors may be technically sufficient for compliance, it is advisable for a private limited company to have more directors on its board to ensure effective decision-making and avoid disruptions due to absence.

      13-04-2023 / 11:25:12 AM
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