Arun Singhal 12 January 2016

Dual employment

I entered into contract to construct with A company presubly that it is subsidiary of B company which is very renowed construction company. later it was know that they had already ceased their relation.

The the company were working on same construction project as contractor and subcontractor at same site. Both the company used a common office at Delhi, employed same employee for same post. most intersetingly the Managing director of B company was appointed the Managing director Of A company withour being even director in A company for this particular project.

Now my question are

1 Is The dual employment by different entities in same premises and same project legal by indian law?

2 IS Appoinment of Managing director in A company without being director legal ?

3 Can the person appointed managing director in A company, if appointed illegitimately, be held responsible in personal capacity for misconduct of B Company in which the person thus appointed is legitimate Managing Director

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2 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 12 January 2016

Interlocking directorate refers to the practice of members of a corporate board of directors serving on the boards of multiple corporations. A person that sits on multiple boards is known as a multiple director.[1] Two firms have a direct interlockif a director or executive of one firm is also a director of the other, and an indirect interlock if a director of each sits on the board of a third firm.

Kumar Doab (FIN) 12 January 2016

The contract of employment issued to employees down the line may be referred if they can be asked to do work of another company or parallel employment is permitted or not!