C sin employment as a promoter director in other company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2013 Friends,

Can a CS in whole time employment(form 32 filed)be a Promoter director in another company, if not please tell the relevant clause.

Ajay Mishra

Ajay Mishra (Expert)
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02 August 2013 Hi

The CS Regulation is not talking about that a whole time CS employee can do any other work or business.

However PCS is allowed to become promoter/director/subscriber of the company.

Ajay Mishra

Ajay Mishra (Expert)
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02 August 2013
Company Secretary in practice may become non-executive director/promoter/promoter-director/ subscriber:

The Council of the Institute at its 156th Meeting held on March 19-20-2005, in exercise of its powers under regulation 168 of the Company Secretaries Regulations, 1982 has accorded general permission to its members in practice to become non-executive director/promoter/promoter-director/subscriber to the Memorandum and Articles of Association of a company the objects of which include areas, which fall within the scope of the profession of Company Secretaries irrespective of whether or not the practising member holds substantial interest in that company.
The Council has further allowed members in practice to become non-executive director/promoter/ promoter director/subscriber to the Memorandum and Articles of Association of a company which is engaged in any other business or occupation provided that the practising member does not hold substantial interest in the company.
The Council in its resolution adopted at the said meeting defined the term non-executive director as to mean an ordinary director who is required to attend the meetings of the Board or its committees only, not paid any remuneration except the sitting fees for attending the Board/Committee meetings and any remuneration to which he is entitled as ordinary director, and devoting his time for the company only to attend meetings of the Board or Committees thereof and not for any other purpose.

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