Appointment of Nominee Director
This query is : Resolved
18 November 2010
Our company is a public compamy (Govt. of M.P. undertaking)we have appointed a Nominee Director in the board meeting.
My question that, whether we need the approval of sharehloders in the next Annual General Meeting to regularize him as required in case of additional directors.
My question that, whether we need the approval of sharehloders in the next Annual General Meeting to regularize him as required in case of additional directors.
18 November 2010
Hi......
In my opinion, no need to regularize the Nominee Director. Nominee Director will remain on the Board of Directors as determined by the Government of Maharashtra. He will be treated as a regular director right from his appointment by the Government and no need to regularize him.
Best Regards and God Bless u always
Udit Sharma
In my opinion, no need to regularize the Nominee Director. Nominee Director will remain on the Board of Directors as determined by the Government of Maharashtra. He will be treated as a regular director right from his appointment by the Government and no need to regularize him.
Best Regards and God Bless u always
Udit Sharma
19 November 2010
Agreed with Mr. Udit....
Nominee Director
The article of association of many companies provide that financial institutions and banks which lend money or other financial assistance to the company shall have the right to nominate one or more directors on the Board of the company. These are called nominee directors.
The appointment of nominee director shall take effect depending on the provisions in the articles of association of the company concerned. Generally if the nominee are appointed by the SBI, LIC nationalized bank, the nominee take effect from the communication nominating the director received from the respective institutions and banks or the date mentioned in the letter of nomination whichever is earlier. Formal acceptance of the nomination by the Board is not necessary to give effect to such appointment. British Murac Syndicate V. Alperton Rubber co. (1915).
However, if the power to appoint nominee director is exercised by other institution/bank, the Board of Directors of the assisted company have to co-opt the nominee director in the Board Meeting or by passing a circular resolution. Thus such appointment take effect from the date of resolution co-opting him on the Board.
A nominee director has to file consent for acting as director of a public company and Form 32 will be filed with ROC within 30 days from the date of appointment.
Consent letter should be attached in Form 32 for appointment of Nominee Director.
Regards
Nominee Director
The article of association of many companies provide that financial institutions and banks which lend money or other financial assistance to the company shall have the right to nominate one or more directors on the Board of the company. These are called nominee directors.
The appointment of nominee director shall take effect depending on the provisions in the articles of association of the company concerned. Generally if the nominee are appointed by the SBI, LIC nationalized bank, the nominee take effect from the communication nominating the director received from the respective institutions and banks or the date mentioned in the letter of nomination whichever is earlier. Formal acceptance of the nomination by the Board is not necessary to give effect to such appointment. British Murac Syndicate V. Alperton Rubber co. (1915).
However, if the power to appoint nominee director is exercised by other institution/bank, the Board of Directors of the assisted company have to co-opt the nominee director in the Board Meeting or by passing a circular resolution. Thus such appointment take effect from the date of resolution co-opting him on the Board.
A nominee director has to file consent for acting as director of a public company and Form 32 will be filed with ROC within 30 days from the date of appointment.
Consent letter should be attached in Form 32 for appointment of Nominee Director.
Regards
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is any professional CA is here please reply
- Reopen of assessment proceeding
- Rental income gst and it purpose
- Experts need help
- EPF FULL & FINAL RULES IN 2026
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Putting a heading on received mail
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
