The Companies Act, 1956
252. Minimum number of directors.
1252. Minimum number of directors.(1) Every 1[public company (other than a public company which has become such by virtue of section 43A)] 2[***] shall have at least three directors:
3[Provided that a public company having,
(a)a paid-up capital of five crore rupees or more;
(b)one thousand or more small shareholders,may have a director elected by such small shareholders in the manner as may be prescribed.
Explanation.For the purpose of this sub-section “small shareholders” means a shreholder holding shares of nominal value of twenty thousand rupees or less in a public company to which this section applies.]
(2) Every 4[other] company 5[***] shall have at least two directors.
(3) The directors of a company collectively are referred to in this Act as the “Board of directors” or “Board”.
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1. Subs. by Act 31 of 1965, sec. 29, for “public company” (w.e.f. 15-10-1965).
2. The words “and every private company which is a subsidiary of a public company” omitted by Act 65 of 1960, sec. 81 (w.e.f. 28-12-1960).
3. Ins. by Act 53 of 2000, sec. 128 (w.e.f. 13-12-2000).
4. Subs. by Act 31 of 1965, sec. 29, for “private” (w.e.f. 15-10-1965).
5. The words “which is not a subsidiary of a public company” omitted by Act 65 of 1960, sec. 81 (w.e.f. 28-12-1960).
