Q2 (Number of Directors and Corporate Auditors)

What’s the minimum number of directors?  Do we need corporate auditors?

Under the Companies Act, at least one director is the minimal requirement, but there is some flexibility as to other corporate governance mechanisms. So, it is possible for a company to not have a formal board of directors (so long as there is at least one director) or corporate auditors. So the minimum number of directors is one (and the minimum number of corporate auditors is zero). However, if you want to have a board of directors, the minimum number of directors is three, and generally you must have one or more corporate auditors.

(Posted: January 27, 2012)