Bikki Raveendra Babu, Member - (1.) This Petition is filed for compounding the violation of provisions of Section 165(1) of the Companies Act, 2013 ("Act" for short).
(2.) It is stated that the Registrar of Companies, Madhya Pradesh, Gwalior ['ROC'] issued a notice dated 12th July, 2016 to the Petitioner asking him to show cause why prosecution cannot be launched against him in a Court of Law for violation under Section 165(6) of the Act. Petitioner gave Reply dated 19th July, 2016.
(3.) As per Section 165(1) of the Act, "no person after the commencement of the Act shall hold office as a Director including any alternate directorship in more than 20 Companies at the same time provided that the maximum number of Public Companies in which a person can be appointed as a Director shall not exceed 10". In the Explanation to Section 165(1), it is stated that "for reckoning the limit of Public Companies in which a person can be appointed as a Director, Directorship in Private Companies that are either holding or subsidiary Company of a Public Company shall be included".;