Legal Metrology is among the stringent laws and is often misunderstood by companies, resulting in a hefty penalty. Although compliances of the act are straightforward, there is a lot of confusion about the law that results in Heft penalties. Various registrations and appointments must be made to execute proper compliances and work under Legal Metrology Act. This article will talk about Director nomination under Legal Metrology Act.
Director Nomination under Legal Metrology Act
As per Article 49 of the Legal metrology Act, the user can nominate any individual or group of people accountable for conducting the company’s business, making them responsible for ensuring that the products and services the company offers comply with the laws of Legal Metrology.
As per Section 49 of the Legal Metrology Act, A company must designate a director for its business. The reasoning behind this decision is best discovered by studying the following instances.
1. If the person is appointed as the Director of the company, and there’s been wrongdoing committed by the company that violates the Legal metrology act, then being a director of that company, you would be solely accountable and liable for any penalty accordingly. You’ll be the one to pay the fines, while your company’s security would be assured.
2. If the company does not nominate the Director to handle the legal aspects of your business’s products or service and the company is found to have committed an act that is in direct contravention to the legal metrology act, then the entire company will be held accountable. Also, the company will be subject to a penalty.
The penalty could range from a substantial penalty fee or, depending on the gravity of the offence, can result in the company’s liquidation.
Requirements for Directors Nomination in the cases of associations or firms of individuals-
Section 49 of the Legal Metrology act clarifies the reasons behind the Director’s Nomination. Also, Subsection (7) of Section 49 describes the role of the Director and the company. Where
- “Company” also refers to Firms and associations of individuals.
- Directors also mean “partners” in the case of a firm.
However, it is to be considered that the person mentioned above shall get the same advantage as the directors of the company.
Procedure for Director Nomination under legal Metrology-
The Director Nomination under legal Metrology is a simple procedure which is explained u/s 49 (2) of the Legal Metrology Act. The company can nominate the Director to act on its behalf.
For Director’s Nomination, the company follows Section 49(2) of the Legal Metrology Act. The process of Director Nomination is mentioned below-
- The company will choose directors.
- Before appointing, the company first needs to get the approval of the Director of the company whom it wants to appoint as Director as per the legal metrology Act.
- Written consent of the Director is a must.
- The company will then issue an order written in the same kind.
- The company will then notify the Director or controller of the department of Legal Metrology of the identical.
Notice: In case of multiple branches of the same company or group of persons exist; everyone holds the right to choose their Director according to the legal metrology act.
Appointment of Nominee Director, In case of Partnership Firm-
Section 49 of the Legal Metrology Act specifies the Directors nomination by the Partnership Firm. As far as subsection (7) is concerned, it clarifies the company’s vide explanation and the role of the Director.
- The company here includes body corporates, further including firms and association of persons.
- In the context of a Partnership firm, Director means partners in the firm. However, it must be noted that the person as mentioned above (s) shall get the same benefits as the Director Nominated by the company.
How to cancel the appointment of the Nominee Director?
Below mentioned are the reasons where the Director appointed under the Legal Metrology act will get cancelled:
- When the notice is received from the company’s Director, Concerned Controller or any such authorised officer.
- The Nominated person who ceases to be a director of the company shall communicate the detail of cessation to the Company’s Director, Concerned Controller or any such authorised officer.
- The person nominated requests the Company’s Director, Concerned Controller, or any authorised officer to cancel the nomination.
- The request shall be in written form and shall act following the Company’s Director, Concerned Controller or authorised legal metrology officer.
- The Director nomination shall not be deemed cancelled earlier than the date of the request letter.
In a nutshell, we can say, Director Nomination in context with Legal Metrology is different from directors’ appointments in the company’s ordinary business. The Director nominated in the Legal Metrology Act takes charge of legal Metrology and every aspect of the company’s products or services.
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