CS Final Student Trainee
727 Points
Joined April 2012
Dear Shubhani,
Please see the following provision if applicable:
Shadow' or 'Deemed' director
Explanation to section 303(1) says that any person in accordance with whose directions or instructions, the Board of directors of a company is accustomed to act shall be deemed to be a director of the company.
Same provisions of the Companies Act, 1956 also applies to a 'Shadow director' being person in accordance with whose directions or instructions the Board of directors of the company is accustomed to act. However, if the Board of directors acts on advice given by a person in his professional capacity he will not be considered as a deemed or shadow director of the company.
But as far as the designation is concerned, that can not be given without fulfilling the formalities.
Regards,
Aditya.