Companies Act, 1956 Section 277

(1) Where a person already holding the office of director in¹[fifteen companies] is appointed, after the commencement of²[the Companies (Amendment) Act, 2000], as a director of any other company, the appointment -

(a) shall not take effect unless such person has, within fifteen days thereof, effectively vacated his office as director in any of the companies in which he was already a director, and

(b) shall become void immediately on the expiry of the fifteen days if he has not, before such expiry, effectively vacated his office as director in any of the other companies aforesaid.

(2) Where a person already holding the office of director in³[fourteen companies] or less is appointed, after the commencement of²[the Companies (Amendment) Act, 2000], as a director of other companies, making the total number of his directorships more than⁴[fifteen], he shall choose the directorships which he wishes to continue to hold or to accept, so however that the total number of the directorships, old and new, held by him shall not exceed⁴[fifteen].

None of the new appointments of director shall take effect until such choice is made; and all the new appointments shall become void if the choice is not made within fifteen days of the day on which the last of them was made.

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1. Substituted by Act 53 of 2000, sec. 135, for "twenty companies" (w.e.f. 13-12-2000).

2. Substituted by Act 53 of 2000, sec. 135, for "this Act" (w.e.f. 13-12-2000).

3. Substituted by Act 53 of 2000, sec. 135, for "nineteen companies" (w.e.f. 13-12-2000).

4. Substituted by Act 53 of 2000, sec. 135, for "twenty" (w.e.f. 13-12-2000).