Can a advocate be a director of a company

Bhanu Teja (Querist) 31 December 2022 This query is : Resolved
Hai sir / mam

My question is a lawyer in practise can form a private limited company instead of LLP with the objectives to provide leagal service to their clients just like an individual practising to provide legal service to take up the cases in court

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A practising lawyer can indeed be a director of a company, even a private limited one, provided their role isn't executive. While advocates are prohibited from personally running a business for profit, they can serve on a board without engaging in day-to-day management. This also extends to being a partner in an LLP or a 'sleepy partner' in a general partnership, though specific rules apply if the partnership is a law firm.

T. Kalaiselvan, Advocate (Expert) 31 December 2022
An advocate shall not be a Managing Director or a Secretary of any company. If the functions of the advocate as a member of the Board of Directors is in case executive in nature, then that action would be against rule 48. An advocate cannot run any business personally and earn a profit. Rule 47 strictly prohibits that.

kavksatyanarayana (Expert) 31 December 2022
Yes. I agree with the advice of the senior expert Mr.T.Kalaiselvan Sir. Under the Rules, An advocate shall not personally engage in any business, and an advocate may be a Director or Chairman of the Board of Directors of a Company with or without any ordinarily sitting fee, provided none of his duties are of an executive character. An advocate shall not be a Managing Director or a Secretary of any Company.

Bhanu Teja (Querist) 31 December 2022
Can he be a partner in LLP

Pradipta Nath (Expert) 01 January 2023
An Advocate can be a Director of a Company and can even act as a partner in a LLP. The proviso is that he cannot act in his executive capacity. In case of partnership firm, he may be admitted as a sleepy partner. But if the firm is a law firm and is a partnership firm then an Advocate can become a partner as well. There are many Advocates who were selected as an associate and afterwards they were promoted as a partner in their law firm. Therefore the answer cannot be either yes or no, it has to be circumstantial.

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