Yes, you can very well start a new company and remain the director in the existing company, but the contract that you have should have no non-competitive clause restricting you to do so. There is no prohibition under companies act, 2013 to take such a move.

Dear Client,

Director is barred from starting competing business even in absence of any clause and wife can start but make sure, your involvement in wife business shall be absolute negative otherwise penal offense under companies act.

Majority share holders have priority say in company business but no oppression and mismanagement to minority shareholders.

in absence of a non compete clause the director can definitely open up a new business.

However, if the other director gains the knowledge that you are using insider detail of the previous company to run the other business then in that case he may file a suit against you.

Regards

director cannot start competing business

2) spouse after giving up directorship should not start any competing business as her husband is director in said company

3) major shareholder can sue director for loss caused to company on account of competing business being run by director

Hi,

No competing business can be started by anyone of directors and the major shareholders can sue for it.

The best way to resign from directorship and get rid of all liabilities. Then start your own venture. The non performing directors may be issued the notice and later on may be removed from the company.

Sell your shares resign as director then start a competing business

2’) you can remove non performing directors from board of directors

3) Special notice (as per section 115 of the Act) of the intention to move a resolution for the removal of director be furnished by No. of members to the company at least 14 days before the meeting at which it is to be moved, exclusive of the day on which the notice is served and the day of the meeting. (Section 169)

2. The company shall, immediately after the notice of the intention to move any such resolution has been received by it, give its members notice of the resolution in the same manner as it gives notice of the meeting.

* No need to give reasons in explanatory statement as per section 102 of the Act.

3. The company must give intimation to the concerned director of the intended resolution by sending a copy of the special notice received by it, forthwith on receipt thereof. The director shall have the right to be heard on the resolution at the meeting.

5. The director, who is sought to be removed, can make a representation in writing against his removal and request the company to notify it to the company’s members . If the director requests the company to notify the members of the company his representation against his removal and the representation is of reasonable length and it has been received not too late, the company must Mention in the notice of the resolution to be moved at the annual general meeting, the fact of the representation having been received; and

Send a copy of the representation to every member along with the notice of the meeting if the representation has been received before sending the notice of the meeting or separately if the representation has been received after sending the notice of the meeting.

Hold and convene a General meeting to discuss besides others the following matters: To pass a [Ordinary resolution] for the removal of director.

Dear Sir,

Even if there is no relevant clause, a director cannot start parallel business as per Principles of Natural Justice. Director may resign or sell away all the shares and start his own business.

Resign from directorship

Pass a board resolution for removing him from the board of directors