Nominee director

Co Act 2013 251 views 2 replies

ratnakar reddy

article assistant

7 Points Joined March 2016

Hi all,

“Nominee Director ”means a director nominated by any financial Institution in pursuance of the provisions of any law for the time being in force, or of any agreement, or appointed by any Government , or any other person to represent its interests”.

Read more at: /articles/appointment-of-a-nominee-director-by-the-board-some-legal-perspectives-28477.asp.

Please clarify this,

Thanks in advance.

Replies (2)

shubham Bhardwaj

Student CA Final

2 Points Joined June 2015

Hii Ratnakar..... This is hereby to inform you that Nominee Director is appointed when a company wants to leveraged their capital structure.... The financial institution or Bank as the case may be, nominate a director in the company so that he can trace all the significant transactions which can effect the credit worthiness of the company, on behalf of that Financial institution or Bank, whatever.

Law Aspire

755 Points Joined August 2009

Originally posted by : ratnakar reddy
	Hi all, “Nominee Director ”means a director nominated by any financial Institution in pursuance of the provisions of any law for the time being in force, or of any agreement, or appointed by any Government , or any other person to represent its interests”. Read more at: /articles/appointment-of-a-nominee-director-by-the-board-some-legal-perspectives-28477.asp. Please clarify this, Thanks in advance.

It can also be in accordance to the provisions of Articles of Association of the Company .
It may also be from a company/ which has not invested in other company