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Director Nomination | BR Associates

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 individual make director nomination as per section 49 of legal metrology act 2009?

As per explanation of section 49 of legal metrology act 2009 for the purpose of section 49 the term company also include.

  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.

procedure for Licence

What is the procedure of director nomination u/s 49?

Following steps to be followed for director nomination :

    1. Obtain the written consent of person who will be nominated as director u/s 49
    2. Company will, by passing a resolution, authorise the person who have given his consent
    3. Company shall give a notice to the Director of legal metrology or the concerned controller or  his authorized officer  in the format specified in thirteenth schedule
    4. A Certified copy of aforesaid resolution and written consent of person who proposed to be nominated shall also be enclosed with aforesaid notice.

Can a company nominate different person u/s 49 for its different establishment or branches?

Explanation of section 49 of legal metrology Act 2009 clearly provides that where a company has different establishment or branches or different units in any establishment or branches then different persons may be nominated under sub-section (2) in relation to different establishment, branch or unit and the person nominated in relation to any establishment, branch or unit to be the person responsible in respect of such establishment, branch or unit. 

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What are the cases in which director nomination may be cancelled?

In following situation director nomination may be cancelled

  1. If a company give written notice of cancelation of director nomination to the director of legal metrology or the concerned controller or the authorised officer
  2. Person who has been nominated ceases to be a director of company
  3. Person who has been nominated has make a request in writing to the Director of the legal metrology or the concerned controller or the legal metrology officer under intimation to the company ,to cancel the nomination

Is there any responsibility on person who has been nominated as director U/S 49 to intimate the Director of the legal metrology or the concerned controller when he ceased to be a director of the company?

Yes, As per First proviso of sub-section (3) of section 49 of legal metrology Act 2009, where a person who has been nominated under this section cease to be director of company shall intimate the fact of such cessation to the Director of legal metrology  or the concerned controller or the authorised officer.

How can we help you?

We assist the persons in obtaining these certificates / Licence by providing specialized services. We have expert team that deal with these matters and provide the guidance to our clients without manipulating the facts and make ensure to deliver the certificate and licence within the reasonable time period