banner_ad

General question

CMA 571 views 1 replies

Hi,

 Can someone clear my doubt..

Can a employee of a company become a director of another company?

Regards,

Pallavi

Replies (1)

Yes, there are no provisions in the companies act which restrict such scenerio..So an employee of a company can become director of another company.Qualification and disqualification of directors are stated in the companies act.Now to become a director the companies act does not prescribe any educational or other qualification for appointment.He must be an individual and should hold Director Identification Number(DIN).But however disqualifications are contained in sec 274 of companies act.The grounds for disqualification are unsound mind, undischarged insolvent, applied to be adjudged as insolvent, convicted by court,unpaid call money in respect of shares held by him and he is a director of some other public company and that public company has not filed annual accounts and annual returns for 3 continuouns years or failed to repay deposits, redeem debentures on due date  or pay dividend.Hence only these criteria are set for disqualification.Hence the person who is in employment can become director of some other comany provided he applies and holds a DIN and fulfills conditions set in the articles of the other company where he is proposes to be appointed as a director if any.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
14 May 2026
Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details