cpc

advocate as director of company


Dear Colleagues,

Can an advocate be a director in One Person Company?

The company will be in complaince management.

 
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Lawyer

Yes, an advocate can be a sleeping director but not on salary.


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ha21@rediffmail.com Mumbai : 9820174108

Originally posted by : Keshav Korgaonkar
Can an advocate be a director in One Person Company?
The company will be in complaince management.

 

1. YES .... it is possible for an Advocate to be a "Non-Executive Director" in capacity of a Advisor /Consultant on Honarary basis, PROVIDED there is a provision of directorship in One Person Co.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com


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Thanks Dr J C Vashista & Hemant Agarwal ji for your response to my query.

You may be aware that One Person Company (OPC) is a new concept in India. That one person who is registered as Director is just like sole proprietor in proprietory firm. He can not be a Sleeping Director or Non-Executive Director. Hence this question asked by me.

Can an Advocate run Consulting Firm in which legal consulting and allied services are provided?

If answer to this question is yes, then he can run OPC in my view.

My further question, if he is permitted to run OPC or Consulting Firm then is it mandatory to registered such firm as Advocate Firm with Bar Coucil?

I asked this questions to many of my seniors but I am not satisfied with the answers.



 



 

 
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ha21@rediffmail.com Mumbai : 9820174108

1. "Korgaonkar Law Firm, LLP",  (OPC /LLP /Pvt. Ltd., Ltd.), can be incorporated and the Management persons can be Professionals (registered Advocate /CA /Doctors .... ) without any restrictions. ALL the registered Advocates can join and conduct their collective practices without any reference to the rules of Bar Council.  Earnings in such (OPC /LLP /Pvt. Ltd., Ltd.) shall be "Professional Income" and not "Commercial /Business Income".

2. An OPC, registered with ROC does NOT remain a "Prop. Firm" and such OPC may appoint several posts on salary basis such as Directors (of various types), Retainers, Managers, etc.... again without restrictions.  Each operations Directors can be a Advocate practicing in the overall interest of the Firm.

3. There are scores of Law firms under OPC /LLP /Pvt. Ltd.  Google search & you find several. Bar Council registers only "individuals" and not Firms. Firm is not a Advocate, but only a legal entity. An individual advocate on retainer in a Law firm can be prosecuted & licence cancelled, BUT the Law Firm keeps running with other participating retainer lawyers..
example:
www.mslegalassociates.in
www.globaljurix.com

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

 
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Thank you Hemant Agarwal ji.

Bar Council registers only individuals as an advocate. But as per Rules 662 (d)& (e) of chapter XXXIII of the civil manual (Rules framed by High Court Mumbai under section 34(1) of Advocate Act 1961, Law Firm is required to be notified and record the names of all Partners / Directors / Associates with State Bar Council. 

Bar Council of Maharashra and Goa has fixed a fee of Rs, 50,000 for getting such notified the Firm.

Once Advocate declares that he is a Firm or Associate or Company, then he needs to record his Firm or company with State Bar Council. 

While registering as an Advocate I had to resign as Designated Partner in LLP. Bar Council had taken an objection of my being as Designated Partner in LLP engaged in HR Consultancy and Allied Services.

 
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