employment of a director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 July 2010 A managing director of a company, has got employment in a overseas Co. by staying and working in india for a salary payable in foreign curreny. Earlier as Managing diredctor he was paid 1.5 lakhs Per month. Can he continue to be MD. and also be employed for a foreign co. If he is employed in foriegn co. can he be paid salary as MD kinldy guide

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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12 July 2010 According to me As per Companies Act 1956 a person can be director in 15 companies. So here he is not crossing this limit. Moreover, according to me MD can receive a salary if he is attending the office on regular basis.

So in your case according to me he can be a MD.

Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2010 here, it will be double employment. Since double employment is against rule, can he earn as wholetime working MD earn salary of 1.50 lakhs p.m and also working wholetime simultenously for another foreign co. and earn in dollars. Kindly guide.

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Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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14 July 2010 Can you tell me under which law it is written that a person can not be employed by two companies or persons??