Can an employee be a non executive director in her husband's company?
2 years ago
My wife is an employee with a private company as an employee and has the following condition in her contract.
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10. Exclusive Contract
You shall not directly or indirectly participate in or deal with any similar other business during your tenure in the Company, in your individual capacity and undertake not to deal or enter into any agreement with any party who is in the business in which the Company is engaged.
Employment in XXXX is full time and you shall not engage in any other business for remuneration or otherwise or calling without the express permission of the company.
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I am starting a new business (completely unrelated to her employer) and I would like her to be a non executive director holding shares. She will NOT be involved with any operations, hold a designation nor draw a salary.
On reaching out to the company HR division, they have asked me to consult a lawyer for a clarification on this although this should be something that should come from the company only.
Since her role will be only of an investor and shareholder, would this qualify as breach of contract?
Your wife can be associated with the company also as the subject matter of the two companies are different and therefore, does not amount to a breach of the employment contract.
Thank you
Being non-executive Director and shareholder will not breach the employment clause but yes as the clause mentions she has to inform her employer about this engagement. In fact most of the companies have this rule that if someone is a director in any other company then it has to be informed.
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UNCREDITED SALARY,THREAT AND EMOTIONAL SUFFERINGS
