A Pvt. Ltd Company Director Can Be Employee Of Other Company

sir,

the situation appears to be a complete deadlock amongs the members/ directors of the company. it is advisable to apply for te winding up of the company on the smae ground. 

Originally posted by : Partha Gorai
	i have a Pvt. Ltd Company . There Are Only 2 Directory. No Other employee. As Company Going Loss i am getting no money from my company from long time. In that case i have join a Pvt. Ltd Company as a employee before 2 month. Now Another director of my company trying to take legal setep for me .   How To Come Over This Problem Please help me .  What is the punishment by law ? Please Suggest

Change your designation as Non Executive Director before the date of accepting the employment in any other company.

Executive director of one company cannot be the employee of any other company. However, if you are non executive director. You can be in employement of any other company.

Dear Partha

usually directors are non executive in P.Ltd.

So, there is no prob to do job in another company(ies).

You should not be M.D.,Whole time Director, Executive Director of yours Company.

Regards

Dear Ankur / Nitin,

I fully agree with you that a Whole Time Director is in the whole time employment of the company and hence he cannot be appointed an employee in another company.

However as regards MD, the Act defines MD as a Director entrusted with substantial powers of the company.  Nowhere he is mentioned as a whole time employee.  The very fact that Section 316 of the Companies Act permits him to be appointed MD of one another Company goes to confirm that he is not in the whole time employment of the Company.  Hence I feel there is no restriction in MD of one company being appointed as whole time employee of another company.

ED is nowhere defined in the Companies Act.  ED is the person entrusted with executive (decision making and execution) powers.  We even find persons designated as ED without actually being a Director in the Board. If the executive powers are entrusted to a part time director, such director can even be an ED.  Hence I hold the view that ED need not necessairly be a whole time employee of the company.

Experts in the forum, please come out with your views.

Regards,

Jayashree S Iyer

Dear Sir,

It depends on what is the present position in the company, if u are a non executive director,  I think u may opt for employment.

As a formalities you may disclose the same.

Whether you are ED or NED, this does not make any difference, you can take employment in any other company irrespective of your directorship.

Basically ED is eligible for remuneration from the company in which he is appointed if terms permit. It has nothing to do that he can not work as employee of some other company,

Thanks

Can my employer stop me from taking up non executive directorship in another co.??