Directorship Of More Than One Company

I think the company that the director wants to join should not have a competitive business..

Keeping all things aside, you should keep in mind that your joining of another co. should not affect the interest of first co. 

Best is you should intimate the first company about you intention to join another co. as director. And also, put the matter before the BOD of first co. and take their opinion.

As far as, companies act provisions are concerned, it neither prohibits any person to become director of more than one company nor authorise first company to prohibit its director to become director of any other company.

However, if such director has any MOU, Agreement or any sort of arrangment with the company, then please visit clauses of such arrangement to determine the exact position.

Regards- Sudhir

Originally posted by : Rajeev
	Whether director of a company wants to join/start any other company, do they have to intimate the first company? Or whether the first company can block such?

 Hi Rajeev,

In addition to above member views, the director need to intimate current company,

 disclosure of  interest vide Form 24AA ( interest as director in other company)

pursuant to section 299 of companies act 1956.

Other views welcome.

regards

Santosh Shah

agreed with santosh shah., good corporate practice to disclose.. 

Thanks Santosh,, for sharing your precious views.

I agree with your comment.

once the company has incorporated,the director can inform his existing company  and it is part of disclosure.  other than that  no restriction 

Best Regards