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Directorship Of More Than One Company

Rajeev (Accountant) (45 Points)

25 March 2011

Whether director of a company wants to join/start any other company, do they have to intimate the first company? Or whether the first company can block such?

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Shridhi Jain (Company Secretary) (1678 Points)
Replied 25 March 2011

I think the company that the director wants to join should not have a competitive business..

Keeping all things aside, you should keep in mind that your joining of another co. should not affect the interest of first co.

Best is you should intimate the first company about you intention to join another co. as director. And also, put the matter before the BOD of first co. and take their opinion.

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Sudhir Garg (Service) (236 Points)
Replied 25 March 2011

As far as, companies act provisions are concerned, it neither prohibits any person to become director of more than one company nor authorise first company to prohibit its director to become director of any other company.

However, if such director has any MOU, Agreement or any sort of arrangment with the company, then please visit clauses of such arrangement to determine the exact position.

Regards- Sudhir

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SANTOSH SHAH (Company Secretary) (754 Points)
Replied 25 March 2011

Originally posted by : Rajeev
	Whether director of a company wants to join/start any other company, do they have to intimate the first company? Or whether the first company can block such?