dual empoyment

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raj (Querist)
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07 July 2009 hi

i am going to start a pvt.ltd company and decided to take my frns in as share holders.

now they say there company says dual emplyoment is not allowed

what i want to know is if they are only share holders in pvt ltd company.then they will not be under dual employment i am a right

or can they be promoters and not directors???
or is there any way???
thanks in advance

Ankur Garg

Ankur Garg (Expert)
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07 July 2009 Hi Raj,

Kindly appreciate as they are only share holders in pvt ltd company so they will not be under dual employment.

Promoters of the company can 100% be directors of the company. There is no restriction in this regards.

So they can be promoters + directors + shareholders at the same time.

Best Regards

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raj

raj (Querist)
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07 July 2009 SIR THANKS FOR REPLY as for as share holder i came to know it doent come under dual
and i KNOW THEY CAN BE PROMOTER+DIR+SHARE HOLDER. wht extra i want to know is...

IF he is a director will he come under dual employment
or if he is a promoter will he be dual employment

the company hr policy says like this

a permanent employee of a company can’t be part time employee of another company, can’t be partner of any concern, Director of organization as it conflicts the interest of the company.
If you want to do any business there should be no registration formalities in your name.

Ankur Garg

Ankur Garg (Expert)
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07 July 2009 Hi Raj,

As per the HR policy clause shared by you yes it is a case of dual employment as such clause is very restrictive in nature. But as far legal implications are concerned you can very well go ahead and with the specific permission of management you may also avoid such clause.

It would not be advisable for you to challenge such clause as it a part of terms of employment of the employee.

Regards

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raj

raj (Querist)
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07 July 2009 so being only share holder in any pvt ltd company will also conflict or not

raj

raj (Querist)
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07 July 2009 only share holding in pvt co with out any formal involvement in management means no problem with dual employment

i am right?

Ankur Garg

Ankur Garg (Expert)
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08 July 2009 Hi Raj,

Let me tell you your observation is absolutely correct.

Being only share holder in any pvt ltd company will not create any conflict as far as dual employments is concerned.

Go ahead my friend and all the best for your new business.

Best Regards

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