Can A Corporate become Director in company

Hello!

No, its not possible that a corporate can be a director in other co. Read sec 253 of Co. Act, 1956 for further details.

Regards

NIdhi

As per Section-253 of COMPANIES ACT 1956 only an individual can become a director...

Hi,

Pursuant to provisions of Section 253, only an Individual can be appointed as a director of the Company.

Regards

CS Ashwini Kumar

Hello,

No. Only individual can become  a director of a company.

However , a company can appoint a nominee as a director in another company.

A limited company may become promoter of any company through any of its nominee by giving nominee name in promoter clause of memorandum & article of association like:

ABC Private Limited through Mr. __

Such nominee can be named as first director in case of a newly incorporated company.

Regards

R.V.Seckar

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Thanks for your reply but could you clarify my one more doubt regarding sec 303 (1) (b) which states that

(1) Every company shall keep at its registered office a register of its directors, managing director, managing agent, secretaries and treasurers, manager and secretary, containing with respect to each of them the following particulars, that is to say:

(b) in the case of a body corporate, its corporate name and registered or principal office; and the full name, addressnationality, and nationality of origin, if different from that nationality 1[ the father' s name or where a director is a married woman, the husband' s name] of each of its directors; and if it holds the office of managing agent, secretaries and treasurers, manager or secretary in any other body corporate, the particulars of each such office;

Kindly reply and state case laws if any.

Agreed with all......... only an individual can become director in a company........ as there must be some one on whom specific responsiblity may be fixed as the same will be somewhat difficult in case of corporate......

I think section 303 (1) (b) is not relevant now and it has become redundant now. Under earlier company law , managing agent can be a company and thus , (b) refers to the same. Since , the concept of managing agent has been now repealed , there is no relevancy for the section (b) now.

I think , drafters of new company bill will also look into this .

Regards,

R.V.Seckar

Pl do visit my blogs :https://rvseckarcompanylaw.blogspot.com/

https://rvseckarfema.blogspot.com/

https://rvseckarindianlaws.blogspot.com

common on yaar, think ur self. can company attend a board meeting? can company vote or take part in decision making??? a representative of company can do but not the company...

dwivedi

no, any person other than individual can't be a director in a company.........

As specified in Companies Act,1956-Only a natural person can be the director of the Company.

As per Section 253,  Only An Individual Can be appointed as Director of a company. However Deemed Director or Shadow Director need not be Individual.

As answered by everyone, A CORPORATE Entity cannot be a director in any Co.

Only an Individual can  be.

Agree with all the replies. Now read this:

As per section 253: No body corporate, association or firm shall be appointed as a director of a company, and only an individual shall be so appointed.

Further as per sectinon 2(13): " director" includes any person occupying the position of director, by whatever name called.

Conclusion: It is clear from above definatins that a coeporate body can not be appointed as director but it can be deemed director.

Plz note underlined words.............

Originally posted by : nikita
	Agree with all the replies. Now read this: As per section 253: No body corporate, association or firm shall be appointed as a director of a company, and only an individual shall be so appointed. Further as per sectinon 2(13): " director" includes any person occupying the position of director, by whatever name called. Conclusion: It is clear from above definatins that a coeporate body can not be appointed as director but it can be deemed director. Plz note underlined words.............

Couldn't agree more .. Just to add my few cents..the deemed director we are talking here is not the deemed director as per S.254 (Deemed 1st directors)..here deemed director /shadow director is one who exercises undue influence on the BOD of a company /on any other person in taking decisions. To penalize such shadow directors, even Body corporates can be brought under the purview of definition of director.. Since the directors are liable for the acts of the company, the directors of such body corporate are indirectly  liable for fines & penalties & prosecutions levied on the body corporate