Section 149 of CA 2013 : Section 149: Company To Have Board Of Directors

Explanation using Example

Imagine a scenario where a tech startup, "InnovateX", is transitioning from a private company to a public company due to its rapid growth and the need to raise more capital. As part of this transition, InnovateX is required to comply with the provisions of the Companies Act, 2013, including those related to the composition of its Board of Directors as outlined in Section 149.

Under Section 149(1)(a), InnovateX, now being a public company, must have at least three directors. Initially, as a private company, they had only two directors, so they need to appoint at least one more director.

Furthermore, according to Section 149(1)(b), InnovateX can have a maximum of fifteen directors unless a special resolution is passed to appoint more. The company decides to expand its board to include experts from various fields and therefore passes a special resolution to appoint s...

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