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Can a practicing lawyer become a shareholder in a business
26-Jul-2023 (In Corporate Law)
can a practicing lawyer become a shareholder of a business. can a practicing lawyer become a shareholder and the general counsel of a business.
These are two separate questions. The answer to the first one is YES. Advocates aren't prohibited from investing in the equity of a company. Nor are they prohibited from receiving income from dividends. The answer to the second question would depend on various factors. One such factor could be whether an advocate when engaged as a 'General Counsel', as you put it, is a salaried employee of a company or a retainer; Is the engagement exclusive; How long is the tenure of such arrangement; etc.
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Adv. Ankit Sahni
Delhi | 25+ Answers
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A practicing lawyer is not permitted to practice another profession or take up employment with an entity. A practicing lawyer would not be permitted to have a direct employment relationship with the Company. Ownership of the Company by being a shareholder is permissible. As regards 'general counsel', the practicing attorney may provide his legal services to the Company on an independent basis, after making full disclosures as required, under the Companies Act, 2013 and relevant rules thereunder, especially if the practicing attorney is a Director on the Board of the Company.
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Adv. Aditya Shamlal
Delhi | 25+ Answers
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yes, but a share-holder only he can not be attributed to any other responsibility of company
yes, but a share-holder only he can not be attributed to any other responsibility of company
yes, but a share-holder only he can not be attributed to any other responsibility of company
yes, but a share-holder only he can not be attributed to any other responsibility of company
yes, but a share-holder only he can not be attributed to any other responsibility of company
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Adv. Siddharth Dev
Delhi | 200+ Answers
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