nominee Director

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bhola muraw

bhola muraw (Querist)
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07 August 2010 what is nominee director and alternate director?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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07 August 2010 Nominee directors can be appointed only if,except where a statute provides, a provision to that effect exists in the memorandum and Articles of Association on occassions when directors have to represent certain third parties in the board. This happens when government,collaborators,holding companies,financial institutions etc nominate a director to represent their interest in the board.

Alternate directors are governed by section 313 of the companies Act,1956 which says the board of directors of a company ,if so authorised by its articles of association or by a resolution passed by the company in general meeting ,appoint an alternate director to act for a director during his absence for a period of not less than three months from the state in which meeting of the board are ordinarly held.

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