Sunil Patil (Director) (25 Points)
08 October 2011Dear Sir,
If a Director (not Managing Director OR Executive Director) of a Company having a specific business (say. Pharmaceutical Industry) without the consent of its Board of Directors becomes a Director in another company having similar business (say. Pharmaceutical Industy), does it lead to his disqualification due to breach of trust OR conflict of interest? What measures can be taken to avoid this
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 09 October 2011
I think whether this breach of trust or not will be decided and governed by the terms of contract between the non executive director and first company.
CAclubindia
