The minimum number of directors required for a public company varies by jurisdiction. Here are a few examples to illustrate how this requirement can differ globally:
- United States: Generally, U.S. corporations must have at least one director, but the specific number can vary by state law. Some states require at least three directors unless there are fewer than three shareholders, in which case the number of directors can equal the number of shareholders.
- United Kingdom: A public limited company (PLC) in the UK must have at least two directors. This is to ensure a balance of responsibilities and more robust governance.
- Canada: For a public corporation, Canadian law typically requires a minimum of three directors, with the majority being resident Canadians, depending on the province of registration.
- Australia: Public companies must have at least three directors, two of whom must reside in Australia.
- India: Public companies are required to have a minimum of three directors.
- Singapore: In Singapore, a public company must have at least two directors, one of whom must be ordinarily resident in Singapore.
The requirement for a minimum number of directors in public companies is typically aimed at enhancing corporate governance standards, ensuring that no single individual has unchecked power, and promoting transparency and accountability. It’s important for companies to consult local regulations to comply with specific legal requirements in their jurisdiction.