My company is faced with a peculiar issue.
One of the senior management professionals who was appointed last year has decided to resign from the company to pursue his personal venture.
However, his line of business is similar to that of my company and what is more shocking is that this senior person has concealed the fact that he is still a Managing Director in company where he has shown himself to be a senior management employee.
As per the ROC website, he is still the MD of the company but to us and his linkedin profile show that he is no longer associated with the given company.
Our appointment letter clearly states that there can be no concurrent employment and this person by being a MD in company while being employed with my company has flouted the clause of his appointment letter.
I would also like to know from my esteemed colleagues that as per Companies Act 2013 can the MD of a company while still being a MD of that company be a full time salaried employee of another company which has no association whatsoever with the company in which he is a MD.
Also does this constitute forgery and cheating?

From India, Mumbai

A detailed enquiry will bring out facts.
Breach of trust, fudging or hiding of factual information is seen from what you mention in the post.
Take out all documents concerning his employment held with you-application,confidentialty disclosures etc
Then down load info from ROC website and then you will get a full idea of his act.
After that you can decide action to be taken after hearing and recording what the employee has to say in his support.

From India, Pune
The facts have been established. We have the details from the ROC site.
I just wanted to know if a person is MD in an existing company can he/she be an employee in another company.
Please shed some light on this matter.

From India, Mumbai

Dual employment is not in order. He cannot function as MD in one company and employee of competing company.
From India, Pune
Dear Nath rao Ji
There is a further complication in this problem.
The legal in charge of my company has stated that since the employee is the MD in another company and hid these facts during the course of his employment or before seeking employment his employment is null void as per the terms of his appointment letter.
Our appointment letter states that one cannot have concurrent employment.
Now the legal in charge is asking us in HR to terminate him and recover the salary paid to him all this duration as his contract of employment is null and void. This I have told the legal person would be incorrect as we have paid him for the tasks done. If not then can be claim damages from such an employee for not disclosing that he was already a MD of a company.
The employee in question has refused out-rightly and has threatened to sue the company for this where he will drag the HR function primarily.
We in HR are quite perplexed as to what is the right course of action to be followed.

From India, Mumbai

You need to take up the matter legally suing him(former MD) for breach of contract.
There will be negative publicity about the whole thing.
But if the facts are true of double employment, then your company has a good case against the employee.

From India, Pune

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