Can any one Clarify the doubt, whether a corporate become Director in Company.
Can A Corporate become Director in company
Saliq Ansari (CA_Final Student) (885 Points)
29 January 2011
17 Replies
nidhigoel89
(Company Secretary )
(594 Points)
Replied 29 January 2011
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
Sakshi kumar
(CA Final Student)
(155 Points)
Replied 29 January 2011
As per Section-253 of COMPANIES ACT 1956 only an individual can become a director...
cs ashwini kumar
(Company Secretary in Practice)
(173 Points)
Replied 29 January 2011
Hi,
Pursuant to provisions of Section 253, only an Individual can be appointed as a director of the Company.
Regards
CS Ashwini Kumar
rvsekar2000
(212 Points)
Replied 29 January 2011
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
Pl do visit my blogs :https://rvseckarcompanylaw.
https://rvseckarfema.blogspot.
https://rvseckarindianlaws.
Saliq Ansari
(CA_Final Student)
(885 Points)
Replied 29 January 2011
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.
Simranjeet Singh
(Proprietor at S Simranjeet & Associates Company Secretaries)
(4396 Points)
Replied 29 January 2011
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......
rvsekar2000
(212 Points)
Replied 29 January 2011
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.
https://rvseckarfema.blogspot.
https://rvseckarindianlaws.
CA. Vikash Dwivedi
(Financial Planning & Analysis)
(3167 Points)
Replied 29 January 2011
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
CA LOVELY ARORA
(C.A. B.Com (H) Graduate)
(2151 Points)
Replied 29 January 2011
no, any person other than individual can't be a director in a company.........
CA Ravi Kumar
(Student)
(23 Points)
Replied 30 January 2011
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.
CA Himanshu Bansal
(Risk Manager)
(2345 Points)
Replied 30 January 2011
As answered by everyone, A CORPORATE Entity cannot be a director in any Co.
Only an Individual can be.
CS Asmita Mehta
(CS)
(308 Points)
Replied 30 January 2011
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.............
krishna Teja
(CA Final)
(85 Points)
Replied 30 January 2011
| 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
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