Can I be a director and be employed by another company?

Director is a proper/trusted authority of a company but there is nothing that prohibits him from being an employee of any other company. So, mere employment won’t have any effect on the company where he holds the position of director.

Can a company director be an employee of the company?

Being a director does not, of itself, make that person an employee of the company. If, however, the company enters into a service contract with the director, the terms of which make the director an employee under the usual common law test, then the director becomes an employee.

Can a govt employee be a director of a company?

A government employee can only become a director of a company with the previous sanction of the government. Every person who is a government employee must first get permission from the government and then only he can become a director of a private company.

Can a director be a director for another company?

Any person appointed as a director of a company has the freedom to be a director in another company. However, Section 165 of the Act states the provisions relating to the number of directorships a person can hold at a given time.

Can a director take a salary?

A company can pay a director (who is also a shareholder) through either salaries or dividends. A salary paid is a tax deductible expense. The company can deduct tax at 19\%, which is the current company tax rate.

Who can work as a director of a company?

Only an Individual (living person) can be appointed as a Director of a Company. A body corporate or a business entity cannot be appointed as a Director of a Company. A company can, however, have a maximum of fifteen Directors and it can be increased further by passing a special resolution.

Who can become a director of a private company?

DIN can be obtained for any person who is above the age of 18. Also, the nationality of the proposed does not matter. Hence, the Indian Nationals, Non- Resident Indians, and Foreign Nationals can obtain the DIN and be appointed as Directors in a Private Limited Company in India.

Can two companies have the same director?

Under company law you can be a director of multiple enterprises, regardless of whether one company is in liquidation. The Companies Act, 2006, also lays out your duties in directorship, and these include exercising “reasonable skill, care and diligence” when running a company.