What is director nomination under legal metrology act 2009?
In accordance with sub-section (2) of section 49 of legal metrology Act 2009 a company may nominate a director to be in charge of and be responsible for the conduct of business or any establishment ,branch or unit thereof to prevent the commission of any offence by the company under the legal metrology Act 2009. I.e. the overall objective is to nominate a person who will ensure all the compliances as required to be complied by a company under legal metrology act 2009.
Can a partnership firm or association of individuals make a director nomination as per Section 49 of the Legal Metrology Act 2009?
As per the explanation of section 49 of the Legal Metrology Act 2009, for the purpose of section 49, the term company also includes.
1. A body corporate
2. A firm or
3. Other association of individuals
And expression director in relation to a firm means a partner in firm but exclude
1. Nominated Direct
2. Honorary Director
3. Government nominated Director
Therefore as per above explanation a partnership firm or other association of individual can also nominate a person as director u/s 49 of Act
What is the benefit of Director Nomination?
As per section 49(1) (a) (ii) of legal metrology act 2009, when an entity does not nominate any person as director u/s 49 and any offence under legal metrology is committed then every person who at the time of offence committed, was in charge of and Company shall be liable to such offence and to be proceeded against and punished accordingly.
However in case of an entity which has nominated a person as director as per section 49(2) of Act, in this case if any offence under legal metrology act is committed then only person who has been nominated as director shall be liable to be proceed against and not the whole company.
Therefore we can conclude that director nomination protect the company as whole and reduce the liability of heavy fine and penalties apart from this it also protect other officer of company and deliver a clear responsibility to person nominated as director to ensure compliance under legal metrology Act.
Can a company nominate a different person u/s 49 for its different establishments or branches?
Explanation of section 49 of the Legal Metrology Act 2009 clearly provides that where a company has different establishments or branches or different units in any establishment or branches, then different persons may be nominated under subsection (2) in relation to different establishments, branches, or units, and the person nominated in relation to any establishment, branch, or unit is to be the person responsible in respect of such establishment, branch, or unit.
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