{"id":5177,"date":"2018-07-31T00:31:53","date_gmt":"2018-07-30T19:01:53","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=5177"},"modified":"2023-10-28T14:02:51","modified_gmt":"2023-10-28T08:32:51","slug":"corporate-and-professional-updates-31st-july-2018","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-31st-july-2018\/","title":{"rendered":"Key Analysis on Maximum &#038; Minimum Director Age"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e83cff86c79\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e83cff86c79\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-31st-july-2018\/#Age_Criteria_of_Directors_under_Companies_Act_2013\" title=\"Age Criteria of Directors under Companies Act, 2013\">Age Criteria of Directors under Companies Act, 2013<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-31st-july-2018\/#Brief_Introduction\" title=\"Brief Introduction\">Brief Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-31st-july-2018\/#Provisions_in_Respect_of_Age_Limit_of_Directors\" title=\"Provisions in Respect of Age Limit of Directors\">Provisions in Respect of Age Limit of Directors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-31st-july-2018\/#Applicability_of_Above_Provisions\" title=\"Applicability of Above Provisions\">Applicability of Above Provisions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-31st-july-2018\/#SEBI_LODR_Regulations_2015\" title=\"SEBI (LODR) Regulations, 2015\">SEBI (LODR) Regulations, 2015<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-31st-july-2018\/#Detailed_Aspect\" title=\"Detailed Aspect\">Detailed Aspect<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-31st-july-2018\/#All_about_of_Whole_Time_director_under_Companies_Act_2013\" title=\"All about of Whole Time director under Companies Act, 2013\">All about of Whole Time director under Companies Act, 2013<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-31st-july-2018\/#Summing_Up\" title=\"Summing Up\">Summing Up<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-8683\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/Company-Directors-img-300x199.jpg\" alt=\"www.carajput.com; Company-Directors\" width=\"949\" height=\"630\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/Company-Directors-img-300x199.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/Company-Directors-img.jpg 500w\" sizes=\"(max-width: 949px) 100vw, 949px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Age_Criteria_of_Directors_under_Companies_Act_2013\"><\/span><span style=\"color: #ff0000;\"><strong>Age Criteria of Directors under Companies Act, 2013<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Brief_Introduction\"><\/span><span style=\"color: #000080;\"><strong>Brief Introduction<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Section 196 of\u00a0the companies\u00a0Act, 2013 contains provisions about Appointment of Whole Time Director\/Managing Director or Manager\u00a0in an exceedingly\u00a0company.<\/li>\n<li>The section contains provisions\u00a0on\u00a0who qualifies to be a director\u00a0during a\u00a0company.<\/li>\n<li>The section contains many events that render\u00a0an individual\u00a0disqualified from becoming a director.\u00a0One in every of\u00a0the criteria\u00a0mentioned\u00a0within the\u00a0section is age of\u00a0a personal\u00a0who wants to become a director.<\/li>\n<li>Our scope\u00a0of debate\u00a0during this\u00a0article\u00a0would be\u00a0the Minimum and maximum age of Directors.\u00a0we&#8217;ll\u00a0be discussing the provisions of law\u00a0during this\u00a0regard and also correlate it with prevalent laws\u00a0within the\u00a0country.<\/li>\n<li class=\"fusion-responsive-typography-calculated\" data-fontsize=\"24\" data-lineheight=\"36px\"><span style=\"color: #000080;\"><strong>Requirements to become the director of a company are:<\/strong><\/span>\n<ul>\n<li class=\"fusion-responsive-typography-calculated\" data-fontsize=\"24\" data-lineheight=\"36px\">Age limit<\/li>\n<li class=\"fusion-responsive-typography-calculated\" data-fontsize=\"24\" data-lineheight=\"36px\">Nationality of the director<\/li>\n<li class=\"fusion-responsive-typography-calculated\" data-fontsize=\"24\" data-lineheight=\"36px\">Disqualifications of becoming a Directo<strong>r<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Provisions_in_Respect_of_Age_Limit_of_Directors\"><\/span><span style=\"color: #000080;\"><strong>Provisions in Respect of Age Limit of Directors<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Section 196(3) of the companies Act,2013 states that any company shouldn&#8217;t employ a manager, whole-time director or manager who is below the age of 21years or an individual who is above age of 70 years.<\/li>\n<li>In case\u00a0a corporation\u00a0wants to appoint\u00a0someone, who has crossed an age of 70 years than\u00a0an organization\u00a0may do so by passing a special resolution.<\/li>\n<li>The explanatory statement should be\u00a0given\u00a0the notice for such motion, where justification should\u00a0tend\u00a0to rent\u00a0that person.<\/li>\n<\/ul>\n<p><strong>Read also : <a href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-right-issue-to-nris\/\">All about the Right issue to NRI\u00a0<\/a><\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Applicability_of_Above_Provisions\"><\/span><span style=\"color: #000080;\"><strong>Applicability of Above Provisions<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>As discussed above, a specific criteria has been provided under the provisions of Sec.196 (3), in respect of WTD\/Manager\/MD.<\/li>\n<li>However, it is also seen that some of other Key Managerial Personnel are also appointed as directors in the form of Non-Executive Director, Independent Director, Additional Director etc.<\/li>\n<li>The Company\u00a0Act is silent about the\u00a0ordinance\u00a0for these directors.<br \/>\nNow some of the questions that arises here are \u2013<\/p>\n<ul>\n<li>How\u00a0to determine\u00a0about age\u00a0of those\u00a0directors?<\/li>\n<li>What are\u00a0the other\u00a0statutes than\u00a0are often\u00a0mentioned\u00a0in respect of\u00a0this matter?<\/li>\n<li>Will any other\u00a0statutes have an overriding effect on\u00a0the companies\u00a0Act provisions?<\/li>\n<li>Does\u00a0the other\u00a0law states otherwise?<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>To answer the above question,\u00a0we want\u00a0to work out\u00a0that if\u00a0the other\u00a0law\u00a0possesses\u00a0the other\u00a0provisions\u00a0during this\u00a0regard.\u00a0Additionally, to Companies Law, the listed companies\u00a0are\u00a0regulated by SEBI.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"SEBI_LODR_Regulations_2015\"><\/span><span style=\"color: #000080;\"><strong>SEBI (LODR) Regulations, 2015<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\">As per these regulations, the following provisions shall be applicable &#8211;<\/span><\/p>\n<ul>\n<li>For an Independent Director, a minimum age limit of 21 years has been prescribed.<\/li>\n<li>A Non-executive director\u00a0shouldn&#8217;t\u00a0be\u00a0quite\u00a0age of 75 years. If such person\u00a0must\u00a0be appointed a Special Resolution should be passed.<\/li>\n<\/ul>\n<p>It is to be noted that the said provisions under SEBI (LODR) shall be applicable only on Listed Companies.\u00a0To the current\u00a0extent these provisions\u00a0are going to be\u00a0applicable over and above companies Act.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Detailed_Aspect\"><\/span><span style=\"color: #000080;\"><strong>Detailed Aspect<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\">Till now, it has been cleared that &#8211;<\/span><\/p>\n<ul>\n<li>Companies Law is the governing law for laying down the provisions in respect of WTD\/MD\/Manager.<\/li>\n<li>On the other hand, SEBI (LODR) Regulations provides the provisions in respect of Independent Director and non-executive directors and that too only in case of listed entities.<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>So now\u00a0there&#8217;s\u00a0no provision in law for<\/strong><\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Directors apart from WTD\/MD\/Manager just in case of non-listed companies.<\/li>\n<li>Maximum age for Independent Directors and minimum age for Non-ED just in case of listed companies.<\/li>\n<li>What happens to directors aside from as mentioned in above 2 points?<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li>Well within these cases we are able to take refuge in the oldest act that governs the idea of any contract i.e. Indian Contract Act, 1872. As per this someone below an age of 18 years cannot enter into a legitimate contract. Even while applying for DIN i.e. Director\u2019s number the age of the one who applies for the DIN should be a minimum of 18 years.<\/li>\n<li>However, still the most age remains an unanswered question. If a director is treated as an employee than the maximum age shall be the retirement age of the employees but this is again not a provision I law.<\/li>\n<\/ul>\n<table style=\"height: 530px;\" width=\"877\">\n<tbody>\n<tr>\n<td width=\"207\"><strong>Kind of Directors<\/strong><\/td>\n<td width=\"190\"><strong>Non-listed Company<\/strong><\/td>\n<td width=\"182\"><strong>Listed company<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"207\"><strong>MD\/WTD\/Manager<\/strong><\/td>\n<td colspan=\"2\" width=\"371\"><strong>Minimum: 21 years<\/strong><\/p>\n<p><strong>Maximum : 70 years<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"207\"><strong>ID<\/strong><\/td>\n<td rowspan=\"3\" width=\"190\"><strong>\u00a0<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Minimum: 18 years<\/strong><\/p>\n<p><strong>Maximum : no limit<\/strong><\/td>\n<td width=\"182\"><strong>Minimum : 21 years<\/strong><\/p>\n<p><strong>Maximum : 75 years<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"207\"><strong>Other NEDs<\/strong><\/td>\n<td width=\"182\"><strong>Minimum: 18 years<\/strong><\/p>\n<p><strong>Maximum : 75 years<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"207\"><strong>Other than above<\/strong><\/td>\n<td width=\"182\"><strong>Minimum: 18 years<\/strong><\/p>\n<p><strong>Maximum : no limit<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Ans of above mentioned query :\u00a0<\/strong><\/p>\n<p style=\"padding-left: 40px;\">a. SEBI (LODR) Regulations exclusively talks about what is applicable to the listed company over and above what is provided in the Co.\u00a0 Act, 2013.\u00a0 so, wherever there is no specific mention as to the age of a particular category of Director in SEBI (LODR) Regulations,\u00a0 Companies Act shall prevail.<\/p>\n<p style=\"padding-left: 40px;\">b. Min : 18 YR ; Max:\u00a0 no limit.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"All_about_of_Whole_Time_director_under_Companies_Act_2013\"><\/span><span style=\"color: #ff0000;\"><strong>All about of Whole Time director under Companies Act, 2013<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-25599\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/WTD-.jpg\" alt=\"WTD\" width=\"896\" height=\"640\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/WTD-.jpg 841w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/WTD--300x214.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/WTD--768x549.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/07\/WTD--800x572.jpg 800w\" sizes=\"(max-width: 896px) 100vw, 896px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Summing_Up\"><\/span><span style=\"color: #000080;\"><strong>Summing Up<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>From above discussion it&#8217;s clear, that law has left many unanswered questions during this aspect. By correlating other acts also we cannot cover all if and but during this regard.<\/li>\n<li>So, minimum age can still be considered as 18 years as an individual below that age won&#8217;t be eligible to induce DIN which may be a compulsory requirement for being a director.<\/li>\n<li>However, the utmost age aside from cases covered specifically within the act remains unclear or we will say there&#8217;s no limit thereto. So, this was the discussion about Minimum and Maximum age of directors, we hope it absolutely was a helpful read.<\/li>\n<\/ul>\n<p>For more information, get\u00a0connected\u00a0with our legal experts now.<\/p>\n<p><strong>Also Read : <a href=\"https:\/\/carajput.com\/blog\/interim-dividend-final-dividend\/\">overview about the interim &amp; final Dividend<\/a>\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Age Criteria of Directors under Companies Act, 2013 Brief Introduction Section 196 of\u00a0the companies\u00a0Act, 2013 contains provisions about Appointment of Whole Time Director\/Managing Director or Manager\u00a0in an exceedingly\u00a0company. The section contains provisions\u00a0on\u00a0who qualifies to be a director\u00a0during a\u00a0company. The section contains many events that render\u00a0an individual\u00a0disqualified from becoming a director.\u00a0One in every of\u00a0the criteria\u00a0mentioned\u00a0within the\u00a0section &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[10023],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5177"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=5177"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5177\/revisions"}],"predecessor-version":[{"id":25601,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5177\/revisions\/25601"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=5177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=5177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=5177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}