Companies Act 2014 section 986

Limitation on number of directorships

Section 986 limits the number of directorships a person may hold where one or more of those directorships is with a designated activity company (DAC).

• A person may not be a director of more than 25 designated activity companies at any one time.
• The same 25-company cap applies where the directorships are spread across a mix of DACs and other company types capable of being wound up under the Act.
• The restriction modifies the general directorship limit in section 142 so that it applies specifically in the context of DACs.
• Both limits operate at any particular point in time, so a person must monitor the total number of directorships held on an ongoing basis.

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