Hi Ramesh,
Can you confirm-
i) whether the Director you are discussing about is an 'employee' of these two companies or partner.
ii) is he drawing salary or any other remuneration or commission or share of profit from both these companies or only from one co.
iii) Whether both the cos are located within the same state or in two different states.
Directors can also be employees, including Executive Directors or Functional Directors, whether on the Board or outside the side there is no bar. If there are nominees from the participating stake holders such as Banks, LIC, RBI, or state or central govts etc. they may be entitled for only sitting/meeting fees + out of pocket expenses or so as they may be drawing salary from their respective employers.