Advocate in BOD of a Pvt. Ltd. Co.

He can be a non executive director.

Thanks Mr. Vishal. Can you provide the details as to under which law it has been stated. Because Bar Council of India Rules clearly state that an advocate cannot enter into an arrangement with a non advocate, for sharing remuneration in any form. So, at the most he can be an employee. But then, will he be able to sign bank documents? 

 The original query is quoted above on which my reply was based. However, the second posting is a complete turn around, let me quote it for you:

" Thanks Mr. Vishal. Can you provide the details as to under which law it has been stated. Because Bar Council of India Rules clearly state that an advocate cannot enter into an arrangement with a non advocate, for sharing remuneration in any form. So, at the most he can be an employee. But then, will he be able to sign bank documents?".

I think you have not gone throught the guidelines of BCI (Bar Council of India), the highest body for advocates which administers the Advocate Act, may I quote the relevant provisions:

"

Section VII-Restriction on other Employments

 47. An advocate shall not personally engage in any business; but he may be a sleeping partner in a firm doing business provided that in the opinion of the appropriate State Bar Council, the nature of the business is not inconsistent with the dignity of the profession.

48. An advocate may be Director or Chairman of the Board of Directors of a Company with or without any ordinarily sitting fee, provided none of his duties are of an executive character. An advocate shall not be a Managing Director or a Secretary of any Company.

49. An advocate shall not be a full-time salaried employee of any person, government, firm, corporation or concern, so long as he continues to practise, and shall, on taking up any such employment, intimate the fact to the Bar Council on whose roll his name appears and shall thereupon cease to practise as an advocate so long as he continues in such employment.

*“That as Supreme Court has struck down the appearance by Law Officers in Court even on behalf of their employers the Judgement will operate in the case of all Law Officers. Even if they were allowed to appear on behalf of their employers all such Law Officers who are till now appearing on behalf of their employers shall not be allowed to appear as advocates. The State Bar Council should also ensure that those Law Officers who have been allowed to practice on behalf of their employers will cease to practice. It is made clear that those Law Officers who after joining services obtained enrolment by reason of the enabling provision cannot practice even on behalf their employers.”

“That the Bar Council of India is of the view that if the said officer is a whole time employee drawing regular salary, he will not be entitled to be enrolled as an advocate. If the terms of employment show that he is not in full time employment he can be enrolled.”

50. An advocate who has inherited, or succeeded by survivorship to a family business may continue it, but may not personally participate in the management thereof. He may continue to hold a share with others in any business which has decended to him by survivorship or inheritance or by will, provided he does not personally participate in the management thereof.

51. An advocate may review Parliamentary Bills for a remuneration, edit legal text books at a salary, do press-vetting for newspapers, coach pupils for legal examination, set and examine question papers;and subject to the rules against advertising and full-time employment, engage in broadcasting, journalism, lecturing and teaching subjects, both legal and non-legal.

52. Nothing in these rules shall prevent an advocate from accepting after obtaining the consent of the State Bar Council, part-time employment provided that in the opinion of the State Bar Council, the nature of the employment does not conflict with his professional work and is not inconsistent with the dignity of the profession. This rule shall be subject to such directives if any as may be issued by the Bar Council India from time to time."

Thanks a lot! I think my query is almost answered. Just want to know what exactly is the difference between executive and a non-executive non-executive director.

1) Executive director is a whole-time employee of the company as well as a director in the same company. Hence, he serves the company in 2 capacities - (a) As an employee of the company. (b) As a member of the board of directors. Example: Managing Director or CEO or by what ever name so called. Non-executive director is only a director of a company and does not serve the company in the capacity of an employee.

2) Executive director is not an independent director where as non-executive director may or may not be independent director.

3) Executive director is paid the salary and non-executive director is paid director's sitting fees.

Thanks a lot...I have got my answer.  The above descripttion is given under which section/rule?

gOOD OPINION BY mR. vISHAL.

Nicely explained by Mr. Vishal

Details of the Director and Excutive director is mentioned in the Company's act.