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CS Executive · Company Law and Practice · Board Composition and Powers of the Board

Himalaya Foods Ltd, a public company, has only two directors on its Board. Its articles are silent on the number of directors. Under the minimum Board size required by the Companies Act, 2013, what is the position?

A public company must have at least three directors. A private company needs two and a One Person Company one. Since Himalaya Foods is a public company with only two directors, its Board is below the statutory minimum and must be strengthened.

  1. ATwo directors suffice for any public company
  2. BThe company must have at least three directorsCorrect
  3. CThe company must have at least five directors
  4. DThe company must have at least seven directors

Explanation

A public company must have a minimum of three directors, a private company two and a One Person Company one. Himalaya Foods has only two, so it falls short of the minimum. Two directors would suffice only for a private company.

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