Company matter

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Querist : Anonymous

Querist : Anonymous (Querist)

10 January 2012 can a director of a company be an consultant of the same company

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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10 January 2012 Yes a Director can render consultancy services for other companies

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10 January 2012 Check provision of section 314 regarding holding of office or place of profit.

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CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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11 January 2012 It has been held by the Bombay High Court that where a director provides services by holding whole-time position under the company, he would be deemed to be the whole-time director & section 314 is not applicable in such a case.

But if director provides the services on a case-to-case basis or on regular or retainer basis , section 314 is prima facie applicable.