A director is a person duly appointed by the company to direct and manage the business of the company. Section 269(1) of Company and Allied Matters Act (CAMA) 2020
The principle of law, by virtue of Section 307(2) of CAMA 2020, is that a person shall not be a director in more than five public companies. At least one, and at most five.
In an instance where a person serves as a director in more than five public companies shall, the law is that such an individual to resign from being a director from all but five of the companies at the next annual general meeting of the companies after the expiration of two years from the commencement of this Company and Allied Matters Act. Section 307(3)
Section 307(4) laid down the penalty for non-observance of the aforementioned sections. It states that any person who acts as a director of a public company in contravention of the provisions of this section is liable to a daily penalty in such amount as the Commission shall specify in its regulations and shall refund to each of the companies every remuneration and allowances paid to him as a director in each of the companies.
Thank you for reading. See you next week.
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