• 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 2 years ago 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. 
Rajgopalan Sripathi
Advocate, Hyderabad
868 Answers
43 Consultations
5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
Ask a Lawyer

Business Lawyers

T Kalaiselvan
Advocate, Vellore
13883 Answers
127 Consultations
5.0 on 5.0
Ajay Sethi
Advocate, Mumbai
23079 Answers
1212 Consultations
5.0 on 5.0
Ashish Davessar
Advocate, Jaipur
18049 Answers
444 Consultations
5.0 on 5.0
Krishna Kishore Ganguly
Advocate, Kolkata
12027 Answers
226 Consultations
5.0 on 5.0
Devajyoti Barman
Advocate, Kolkata
5131 Answers
54 Consultations
4.9 on 5.0
Nadeem Qureshi
Advocate, New Delhi
3513 Answers
129 Consultations
4.9 on 5.0
Rajgopalan Sripathi
Advocate, Hyderabad
868 Answers
43 Consultations
5.0 on 5.0
Shivendra Pratap Singh
Advocate, Lucknow
2693 Answers
41 Consultations
4.9 on 5.0
Lakshmi Kanth
Advocate, Hyderabad
221 Answers
2 Consultations
4.8 on 5.0
Shashidhar S. Sastry
Advocate, Bangalore
1231 Answers
59 Consultations
5.0 on 5.0