Can a full time employee became a director of another co.

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A full time employee can be a director in another company if employment terms do not restrict it. However, he can only act as a non executive director, as full time employment with multiple companies is not allowed.

Querist : Anonymous

Querist : Anonymous (Querist)

04 October 2012 The employment contract of an employee requires it to be a full time employee with the company. can he became a director( not managing director) of another company being in employment of the first company?

U S Sharma

U S Sharma (Expert)
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04 October 2012 if the service agreement between the employee and employer does not restrict about it, then its possible to be director of another company.

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Ajay Mishra

Ajay Mishra (Expert)
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04 October 2012 Hi

Yes, he can appoint in any other company as a director.

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Querist : Anonymous

Querist : Anonymous (Querist)

04 October 2012 Thanks Sir. However this has raised a query that would that not lead to breach of service contract between the employer & employee?

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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04 October 2012 A full time employee of one company can be the director of other company however, he may be only Non Executive Director.

He cannot be a executive director. Because a person cannot be in full time employment with more than one employer.

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