Council leader Andrew Burns said he took further legal instruction on the appointment of Sue Bruce as non-executive director of the Perth-based energy firm after it emerged the company was in talks to renew a multi- million-pound contract with council weeks before her appointment.
Yesterday council leader Andrew Burns said Ms Bruce will spend 10-12 days a year on her new job, which she will undertake during her annual leave.
She will donate her £50,000 a year pay from SSE to charity.
Mr Burns said he had taken internal and external legal advice on the issue but he said for legal requirements he wasn't immediately able to make that public.
He said yesterday: "I did ask for clarification. I am confident that there is no conflict of interest."
The chief executive of the council, appointed in 2011, is paid £158,533 by the council.
The news prompted concern and Unison, Scotland's biggest public sector union, said: "When front-line staff are pushed to the limit covering for staff shortages, it is not a good message that the chief executive has enough time to take on a second job".
The move was approved by Mr Burns who said concerns about the energy contract prompted the second legal opinion.
This came at no extra cost to the council as the law firm he consulted is under contract to the authority.