company law

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Arijit

Arijit (Querist)
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29 April 2009 what is the difference between a director and a deemed director?

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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29 April 2009 as per section 7 deemed director is a person in accordance with whose directions or instructions the board of directors of a company is accustomed to act, by reason only that the board acts on advice given by him in a professional capacity.
The person is not an actual director(like other director ), however he is deemed to be a director only to impose restriction and prohibition on him.
A deemed director may an individual, a body corporate or other entity.
Deemed Director is called shadow director under English law

Ankur Garg

Ankur Garg (Expert)
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29 April 2009 A deemed director is a director who is not appt as a dir by BOD, but he is dir acting from behind the scene.
In English Companies Act, he is called a "shadow director."

As per the explanation to sub-section (1) of section 303 if the board of directors of a company is accustomed to act in accordance with the directions or instructions of a person, he is deemed director of a company.

Arijit

Arijit (Querist)
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30 April 2009 Thanks a Lot

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