A Director of the private limited company want to avail a new contract under sole proprietorship. There is no conflict of interest between the Director and the company. Whether a director of private limited company can use the credential of parent company to fulfill the eligibility criteria to attain new contract under sole proprietorship? What are the latest decision in support can be produced in govt. dept.?
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1) please read the terms of tender relating to eligibility criteria .
2) credentials of pvt company cannot be used by director of the company to bag the contract under sole proprietorship .
3) a company is distinct legal entity having separate PAN no service tax no , sales tax no etc
4) each tenderer gets its credentials based on work executed by by them in their name
5) the credentials of company and proprietary firm are independent
1. It depends on the terms and onsitions stipulated by the pvt.ltd. company for the conduct of its directors while acting as an individual or proprietorship firm,
2. If there is ni bar, then the individual director can site his experience, being a director of the pvt. ltd. company, while trying to bag contract for his proprietorship firm.
No he cannot. the company has a different entity from the of the director and hence the company's dredentials are not necessarily the results of the director.
The director can only show his experience and use it for business as long as such business is not in conflict with the company.
1. Rights, Powers, Responsibilities, liabilities of a director are all fixed by the Board of Directors while appointing the M.D. if the same are not present in the Articles of Association registered with the ROC.
2. If there is no restriction on sole proprietorship coupled with absence of conflict of interest then he may commence sole proprietorship.
