Board of Directors: How Many Members Can You Have and Who's Eligible?

Board of Directors: Maximum Members and Eligibility

Can anyone tell me what is the maximum limit of the number of members on a board of directors?

Also, can a non-stakeholder be a board director?

The maximum number of directors will be as provided in the Articles of Association. The act only provides the minimum (2 for private and 3 for public Ltd. Co). A non-stockholder/shareholder can be a director if it is not disallowed by the Articles of Association. There is no concept of a stakeholder in the Company Act. If the Articles of Association are silent, you need to see Table A/Model AOA provided in the act. Please note that from January 2014 onwards, the new rules will come into effect under the Co Act 2013 as they get notified. So, some of these may change soon.

Director Requirements as per the Companies Act of 1956

Private Company:
- Minimum of two directors.
- No limit on the maximum number of directors that can be appointed (Section 259).

Public Company:
- Minimum of three directors.
- Maximum of twelve directors (Section 259 states that the number of directors can be increased beyond twelve with the permission of the central government).

Private Company that is a Subsidiary of a Public Company:
- Minimum of two directors.
- Maximum of twelve directors (Section 259 allows for an increase in the number of directors beyond twelve with the permission of the central government).

Thank you.

Are you talking about the old or new Companies Act? Companies can increase the number of directors subject to approval by shareholders through a special resolution.