Prakash Tiwari (MD) 22 December 2017

Legal advisor and director

Hi,

I have a question.

Can a legal advisor of a private limited company also hold the position of a director in the same company ?

Regards

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6 Replies

Vijay Raj Mahajan (Advocate) 22 December 2017

Yes what's wrong in this?

Siddharth Srivastava (Advocate) 22 December 2017

Yes. Directorship of a company is not an employment.

Sankaranarayanan (Advocate) 27 December 2017

A managing director occupies the dual capacity of being a director as well as an employee of the company. Thus, for example, the Supreme Court observed that he can be regarded as a principal employer for the purposes of the ESI Act, 1948. Employees State Insurance Corpn. v. Appex Engineering P. Ltd., (1998) 1 Comp LJ 10: [19981 1 LLJ 274 (SC). He is not a mere servant, he is an agent of the company with the capacity to bind the company within the sphere of management authorized to him. Happy Home Builders (Karnataka) P. Lid. v. Delite Enterprises, (1994) 13 Corps LA 405 (Kar)