Returning the shares after resigning as Director in a private co.
I worked in a small software company with 3 directors with everyone holding 25 % stake each. Rest 25% is given to a shareholder. Now i have resigned as director and left the company. If i take any job with a major software company or any enterprise. Would it be a legal conflict if i continue to hold shares of my old company and work in my company. Does being just a shareholder of old company could be a problem with the employment in the new company. If i return the shares to the other directors of old company. I am not gaining anything. So is it a nice idea?? Thanks
Asked in Business Law from Delhi, Delhi
Hi, as long as you are a shareholder and not an active director in the software company, it is well within your rights to join as an employee elsewhere. Just ensure that the company you are currently working and the company where you invested are not competitors or working in the same industry domain.if there is a clause in your employment contract stipulating declaration of investments or interest in similar or allied fields, kindly make full disclosure to your employer right away.