Occuopier

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2012 Dear Members,

Suppose an Occupier of a Company resigns and the Company does not appoint a new Occupier. What are the implication in this case. What would happen? Will the Company have any effect on its functioning?

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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30 January 2012 Section 2(n) of the Factories Act, 1948 states that `occupier' of a factory means the person who has ultimate control over the affairs of the factory; provided that in the case of a company, any one of the directors,shall be deemed to be the occupier

The Supreme Court has held that in the case of a company, the occupier of a factory owned by a company would mean any one of the directors of the company who has been notified/identified by the company to have ultimate control over the affairs of the factory. And where no such director has been identified, then, for the purposes of prosecution and punishment under the Act,
the Inspector of Factories may initiate proceedings against anyone of the
directors as the deemed occupier.

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