Can an employee be a non executive director in her husband's company?
My wife is an employee with a private company as an employee and has the following condition in her contract.
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10. Exclusive Contract
You shall not directly or indirectly participate in or deal with any similar other business during your tenure in the Company, in your individual capacity and undertake not to deal or enter into any agreement with any party who is in the business in which the Company is engaged.
Employment in XXXX is full time and you shall not engage in any other business for remuneration or otherwise or calling without the express permission of the company.
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I am starting a new business (completely unrelated to her employer) and I would like her to be a non executive director holding shares. She will NOT be involved with any operations, hold a designation nor draw a salary.
On reaching out to the company HR division, they have asked me to consult a lawyer for a clarification on this although this should be something that should come from the company only.
Since her role will be only of an investor and shareholder, would this qualify as breach of contract?