Can a director of pvt ltd co. also operate a Prop. firm?

This query is : Resolved

CMA. Subhash Kumar Jha (Querist)
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14 November 2008 We are an STPI Pvt ltd Co. & operate within a custom bonded warehouse. One of our director is also running his own prop. firm some where else.

Now He wants to shift his prop firm to our bonded office. is it possible that he may operate from a separate identified space within our office itself?

Just to tell you that his prop firm not doing any STPI activity.

Please clarify.

Subhash

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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14 November 2008 Oh yes! with proper lease agreement and compliance of companies Act relating to contracts in which directors are interested.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Querist)
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14 November 2008 But sir,
thats the first part.
what about that our office is a custom bonded warehouse & his porp firm's activity has nothing to do with it.

IS IT ALLOWED ?

Subhash

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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14 November 2008 You are after all letting the space on rent is it not?

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Querist)
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14 November 2008 yes sir,

now reply

Thanks

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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14 November 2008 Then go ahead and let out, but observing the Companies Act provisions as I told earlier.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Querist)
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14 November 2008 Thanks very much sir,

subhash