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MSC1 (Director)     15 July 2010

Advocate Be a MD when he is not in practice

 

Hi,

An Advocate who is not in practice since his enrollment in State Bar Council, he use to do practice in Taxation but now he got an offer from his friend to become a MD in his friend Pvt Limited Company.

As we all knows that:  Section VII-Restriction on other Employments-48- says, An advocate may be 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.

and also -49- says :  An advocate shall not be a full-time salaried employee of any person, government, firm, corporation or concern, so long as he continues to practise, and shall, on taking up any such employment, intimate the fact to the Bar Council on whose roll his name appears and shall thereupon cease to practise as an advocate so long as he continues in such employment.

U may think,  when i know this is not possible to become MD for an advocate who is in practice then why i am asking such question,

but

my question is  that person only has a Bar Council Membership and he is not in practice since the beginning so is this possible for him to be MD or he should surrender his license or he should contact the concerned bar council. or does it is the same meaning that bar council membership is a proof that he is in practice. when he is not in practice. 

Please rectify me if am wrong anywhere. i would be appreciate if you could clear me by replying the above concern.



Learning

 9 Replies

A V Vishal (Advocate)     15 July 2010

Mr MSC

The Bar Council membership itself makes the person eligible to practise, there is no separate certificate of practise issued, hence, your friend cannot be a MD without relinquishing his Bar membership.

1 Like

SRIKANTH MYLAVARAPU (SENIOR OFFICER (LEGAL))     15 July 2010

sir,

your friend can become an MD only after intimating about his recognisation  to the state bar counsel.

then the state bar counsil will block his name menas susppend fomm the practise after his enure from the services as an MD the state bar counsel will un block his name then he can do practise.

MSC1 (Director)     15 July 2010

thank you very much, it means he can be a Director not MD, 

Does he need to inform concerned Bar Council to becoming a Director?

Dear Srikanth, you mean to say there is an option for him to block  his membership and again he can unblock the same according to his convenient. 

Thanks a lot .

Arup (UNEMPLOYED)     15 July 2010

if the person not the member of any bar council or not a practising advocate,- has the liberty to be md or director or any other post

CS Pooja (Company Secretary)     16 July 2010

Before, I give my opinion, I want to say, that I know the discussion is going about an Advocate being appt as an MD. But, I cant stop myself to suggest that-

Instead of relinquishing your hard earned membership, it will be a better option to be an Independent Director. For money matters, you can always get sitting fees and you can raise bills on the company n number of times for your profeesional advice given.

MSC1 (Director)     16 July 2010

Please let me know, whether an Advocate can be a Director of a PVT Limited Company or not? Please clear me

SRIKANTH MYLAVARAPU (SENIOR OFFICER (LEGAL))     16 July 2010

sir,

sure he can become

Anil Agrawal (Retired)     18 July 2010

Except for giving legal advice, he can't take active part (like sign agreements, cheques, file income tax returns,  etc.)

Daksh (Student)     28 July 2010

Thanks a tonne everybody for enlightening me.

Best Regards

Daksh


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