Government employee and private limited companty
1 month ago
Can a government employee be a shareholder of a pvt ltd company? Can he become director of that company? This particular person is a "Grade ASTO (Assistant Station Officer)" with Kerala fire force. Pls advise.
A.Dear Client,
According to Rule 43 of the Kerala Government Servant Conduct Rules, 1960:
(a) Government servants are prohibited from engaging in speculative investments. The habitual buying and selling of securities with notoriously fluctuating values are considered speculative.
(b) Government servants are not allowed to make investments, or permit their family members to do so, which may potentially embarrass or influence them in the discharge of their official duties.
Rule 45 specifies that government servants cannot serve or accept paid employment in any company, mutual benefit society, or cooperative society. They also cannot act as agents, whether receiving salary or commission, for any insurance company or society. However, if no remuneration is accepted, a government servant may participate in managing a mutual benefit society with prior departmental sanction and a certificate ensuring no detriment to official duties.
Rule 48 states that government servants cannot engage in any trade, business, or employment without the previous sanction of the government.
Rule 67A prohibits government servants from holding office in any communal or religious organization, trust, or society.
All India Service Rules (Conduct) of 1968 also restrict government employees from participating in any trade or business and prohibit them from taking up other professions while in government service. Consequently, holding the position of a director in a company is not permissible for a government employee under these rules.
According to Rule 43 of the Kerala Government Servant Conduct Rules, 1960:
(a) Government servants are prohibited from engaging in speculative investments. The habitual buying and selling of securities with notoriously fluctuating values are considered speculative.
(b) Government servants are not allowed to make investments, or permit their family members to do so, which may potentially embarrass or influence them in the discharge of their official duties.
Rule 45 specifies that government servants cannot serve or accept paid employment in any company, mutual benefit society, or cooperative society. They also cannot act as agents, whether receiving salary or commission, for any insurance company or society. However, if no remuneration is accepted, a government servant may participate in managing a mutual benefit society with prior departmental sanction and a certificate ensuring no detriment to official duties.
Rule 48 states that government servants cannot engage in any trade, business, or employment without the previous sanction of the government.
Rule 67A prohibits government servants from holding office in any communal or religious organization, trust, or society.
All India Service Rules (Conduct) of 1968 also restrict government employees from participating in any trade or business and prohibit them from taking up other professions while in government service. Consequently, holding the position of a director in a company is not permissible for a government employee under these rules.
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A.Dear Client,
As per Rule 43 of Kerala Government Servant Conduct Rules, 1960, (a) No Government servant shall speculate in investments. For this rule, the habitual purchase and sale of securities of notoriously fluctuating value shall be deemed to be speculation in investments. (b) No Government servant shall make or permit any member of his family to make any investments likely to embarrass or influence him in the discharge of his official duties. According to Rule 45, No government servant shall serve or accept paid employment in any Company, Mutual Benefit Society or Co-operative Society or act as an agent, whether paid by salary or commission, to any Insurance Company or Society. Where, however, no remuneration is accepted, there is no objection to a Government servant taking part in the management of a mutual benefit society if he has first obtained the sanction of the Head of his Department and a certificate to the effect that the work undertaken will be performed without detriment to his official duties. As per Rule 48, No Government servant shall, except with the previous sanction of the Government, engage directly or indirectly in any trade or business or undertake any employment. Rule 67A of Kerala Government Servant Conduct Rules prohibits any Government Servant from being an office-bearer of any communal or religious organization or such trust or society. The All India Service Rules (Conduct) of 1968 also prohibits Government employees from engaging in any trade or business. It doesn't permit a government employee to take up any other profession or business. Hence, he cannot occupy the post of director of any company while in government service.
As per Rule 43 of Kerala Government Servant Conduct Rules, 1960, (a) No Government servant shall speculate in investments. For this rule, the habitual purchase and sale of securities of notoriously fluctuating value shall be deemed to be speculation in investments. (b) No Government servant shall make or permit any member of his family to make any investments likely to embarrass or influence him in the discharge of his official duties. According to Rule 45, No government servant shall serve or accept paid employment in any Company, Mutual Benefit Society or Co-operative Society or act as an agent, whether paid by salary or commission, to any Insurance Company or Society. Where, however, no remuneration is accepted, there is no objection to a Government servant taking part in the management of a mutual benefit society if he has first obtained the sanction of the Head of his Department and a certificate to the effect that the work undertaken will be performed without detriment to his official duties. As per Rule 48, No Government servant shall, except with the previous sanction of the Government, engage directly or indirectly in any trade or business or undertake any employment. Rule 67A of Kerala Government Servant Conduct Rules prohibits any Government Servant from being an office-bearer of any communal or religious organization or such trust or society. The All India Service Rules (Conduct) of 1968 also prohibits Government employees from engaging in any trade or business. It doesn't permit a government employee to take up any other profession or business. Hence, he cannot occupy the post of director of any company while in government service.
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