Separate Business of MD

Save Share

This query is : Resolved

Quick Summary

A Managing Director (MD) is generally permitted to have their own separate business. The Companies Act 2013 does not contain any specific provisions that prohibit this. While an MD can hold directorships in their own companies while employed elsewhere, this is typically subject to the agreement and policies of their primary employer. Appointment as an MD, especially with majority shareholding, often facilitates this arrangement.

Ankur Patel

Ankur Patel (Querist)
Follow

04 February 2020 Whether a Managing Director can have his own separate business?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

04 February 2020 Yes he can have........

Ankur Patel

Ankur Patel (Querist)
Follow

05 February 2020 Can you please give reference of Case Law or The Companies Act provision.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

05 February 2020 There is no provision in Companies Act, 2013 that prohibits the same. There are many people who are in employment elsewhere and become director in their own company. So that is possible, unless the company where he/she is doing job objects on the same. The person gets appointed by virtue of majority shareholding.