Directorship

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Nitesh

Nitesh (Querist)
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14 November 2012 CAN A GOVERNMENT EMPLOYEE BECOME A DIRECTOR IN A PRIVATE LIMITED COMPANY...

CS SIDDHARTHA BANIK

CS SIDDHARTHA BANIK (Expert)
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15 November 2012 As far as company law is concern, there is no such objection for an Govt. employee to take the position of Director a company.

But, i belive that the person concern should obtain NOC from his employer, as per his service rule.

thanks,

V K Bajaj

V K Bajaj (Expert)
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15 November 2012 NO

Govt employee cannot accept such offer.

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Ajay Mishra

Ajay Mishra (Expert)
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16 November 2012 Hi

Yes, a government company employee is free to appoint as a director in other company. They only take approval from our authority.

For example ministers are director of most of the company.

Nitesh

Nitesh (Querist)
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16 November 2012 Dear Ajay Sir is there any restriction regarding executive and non executive directorship in above question or in your given answer.

Ajay Mishra

Ajay Mishra (Expert)
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16 November 2012 Hi

Yes, you can not hold any executive level post in the nature of director. You will only hold as Independent or professional. If the director is promoter then they can do business but can not take any remunerations.

Nitesh

Nitesh (Querist)
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16 November 2012 thanks sir, but someone told me that a government employee can be a director but only act as non executive/ sleeping..is it true..

Ajay Mishra

Ajay Mishra (Expert)
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16 November 2012 Hi

Yes, it is called non executive if they are not taking any remuneration or benefit.

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Nitesh

Nitesh (Querist)
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16 November 2012 Thank you sir...