Can a government employee become a director of a private company.

[CS Manish Chopra]

Dear Members,

Can a government employee in service become a non executive director of a private company (not a govt. Company), or need any approval from government ?

Thanks & Regards

Manish Chopra
Practicing Company Secretary
97802-98898
Panchkula (HR)

[Venkata subba rao]

Yes as an NED

Regards
Cs p.v.suubba Rao
Cs,cma,mba ,m.com

[Ramaswami Mohan]

Depends upon the service agreement. normally government employees are not allowed to be a director on any company in their personal capacity. Only as NOMINEE DIRECTORS if they are nominated by the Government,

regards,

Mohan

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CS. R.  Mohan
Mobile: 9908814677

[CS Manish Chopra]

Thanks, but there are many examples that government employees incorporated there own private companies during their service, some of the examples are Arvind Kejriwal' Principal Secretary formed Endavour systems private Ltd, and Yadav Singh chief engineer of up government who formed more than 20 companies.

In case of any query feel free to revert.

Thanks & Regards

Manish Chopra
Practicing Company Secretary
97802-98898
Panchkula (HR)

[Nafisa Charania]

good point

Thanks and Regards,

Nafisa Charania

B.Com ACS LLB
Mobile: +91 (0)9820533895
Email:nafi...@gmail.com

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[CS_SrikanthReddyKolli]

it is advised that the code of conduct applicable to such govt employee shall be studied and ensure that if any prior approvals are required or not or if there is any bar on taking other jobs.

those people mentioned above might have carefully studied their applicable code of conduct and with caution only they might have formed companies, i guess.

[Venkat Ramanaa]

hello,

Law is clear,wholesome. Stray readings or bad instances don't alter position of law.

Unless prior permission of the competent authority is obtained ,per procedure laid Disney in the applicable ,conduct rules ,no government servant - be it a peon or chief secretary ,can undertake business or even be associated in any capacity connected to any business activity other than his official functions ,duties attached to given designation/ official post. 

In the instant case, enforcement agencies are bringing the delinquent,charged officer to justice. Since,he apparently acted in such a blatant violation.

Ex officio nominations are ,by definition, self explanatory .

Be way of interpreting clear cut provisions of law by succumbing to bad apples of society's anarchy environment. Law must set the orderliness of a disciplined mind. Per constitutional ideals. 

Best,

PVR

[Venkat Ramanaa]

Typo corrected.

---------- Forwarded message ----------
From: Venkat Ramanaa <pvr...@gmail.com>
Date: Wednesday 30 December 2015
Subject: [CSMysore] Can a government employee become a director of a private company.
To: "csmy...@googlegroups.com" <csmy...@googlegroups.com>


hello,

Law is clear,wholesome. Stray readings or bad instances don't alter position of law.

Unless prior permission of the competent authority is obtained ,per procedure laid Down in the applicable ,conduct rules ,no government servant - be it a peon or chief secretary ,can undertake business or even be associated in any capacity connected to any business activity other than his official functions ,duties attached to given designation/ official post. 

[CS DR.SHANKARANARAYANA AMRUTHAPURA SRINIVASARAO]

The conduct of Government servants are governed by CCS( conduct ) Rules. It doesn't permit to take up any other profession or business. Hence he cannot occupy such posts. It's not allowed strictly. If any one is doing means they may be punished under conduct rules.

[CS Manish Chopra]

But the point is that the person I mentioned above were investigated because of there involvement / connection in taking advantage of their position for personal benefits and not for the reason that they formed their own private company,
in case a government employee is incorporating a private company and there no connection or reason that the employee is taking benefit of his position for private profits.

In case of any query feel free to revert.

Thanks & Regards

Manish Chopra
Practicing Company Secretary
97802-98898
Panchkula (HR)

[Venkat Ramanaa]

There is no scope for discussion or sorculation where the law is clear and unambiguous,on any point of business transaction.

Period.

[lingala subbareddy]

he has to take prior approval from Government.