Working of Director in other company

Thanks Mr. Shah. But can he work as an employee on the payrolls of another entirely different company without the other company knowing it?

Yes, Mr. Jagmohan, he can, provided he is a non executive Director in that company.

 my answer is also yes.

Dear All

A little more clarity/granularity please. I read that you can be the director as long as there is no conflict of interest. This is a thin line I believe. Are there any guidelines like same business line is not permitted. Could be same business but the product can't be same etc. For example: same business is very broad. Software/IT is the business. so if I am joining another company which is also into software (but not making the same kind of product/service) is that ok? or does it constitute conflict of interest? Another question: is the director allowed to participate in interviews or public appearances about his company while working as an employee in another company? sorry about this lengthy question, but you are all experts in your areas and can help us understand it better.. Thanks so much in advance.

I believe, If a person is allowed to be Managing Director in two companies (U/s 316) then any other ordinary director will also be allowed, may be subject to some conditions. Also, to some extent it depends whether he is executive director or non executive Director and Whole time or part time.

More over Pvt companies have been given lots of liberty. I'll have to check this.

VKDwivedi

I have a similar question.

Can a Board-director(Co-founder with minority stake) seek employement in another company?
 Does the director needs to duly inform Managing Director before signing such professional commitments?

thanks&regards.