Director Nomination Under Legal Metrology

Date : 2020-04-27

Legal Metrology is one of the draconian law that is prone to be often misunderstood leaving many into paying hefty penalties. Though the compliances are straight and simple under the legal metrology, people tend to mistake about it- and we are pretty sure that in each case the reason behind any noncompliance may not be intentional one but in reality, the people are not much informed. Earlier till the year 2008, the law of legal metrology was called Standard Weight and Measurement Act but in the year 2009, the new law is called as “Legal Metrology Act, 2009. Neither in past nor present, have that time never been seen when the concepts under the legal metrology are clear and understandable to people at large.

Let us talk about the nomination of directors under legal metrology.

WHAT IS DIRECTOR NOMINATION UNDER LEGAL METROLOGY?

Section 49 of legal metrology act permits the user to nominate any person(s) as responsible for the conduct of the business of the company and hence the said person(s) shall be responsible for the compliances under legal metrology. Let us understand it from the following 2 situations.

Situation 1: where the person is nominated then if any offence has been committed under this act, the ONLY person(s) shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.

Situation 2: where no person has been nominated under the act, in case any offence has been committed by a company then every person who at the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company and the company itself also- shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.

 NOMINATION IN CASE OF FIRMS/ASSOCIATION OF INDIVIDUALS

Section 49 of this act clearly explains the nomination of directors by the companies. As far as sub section (7) is concerned, it spells outs the vide explanation of the company and nominated director.

Company includes body corporates further including firms and association of persons.

Whereas Directors in relation to a firm means partners in the firm.

However, it must be noted that the above-mentioned person(s) shall reap the same benefits as by the nominated directors of the company. 

Further, section 49(7) keeps out all the nominated directors, honorary directors and Govt. nominated directors from the list.

WHAT IS THE PROCEDURE OF DIRECTOR NOMINATION UNDER LEGAL METROLOGY?

The nomination of a director under legal metrology is the uncomplicated procedure explained under section 49 (2) of the legal metrology act. The company has the right to nominate the director to act on his behalf under legal metrology.

A company will appoint the director and a written order shall be passed.

Company may give notice to the Director or the Controller or Legal metrology authorised officer. 

Written consent of the Director nominated is a must.

NOMINATION IN CASE OF MULTIPLE BRANCHES/UNITS/ESTABLISHMENTS

If a company is having different units, establishments or branches, different persons may be nominated for each unit and will be responsible for that particular unit or branch.

CANCELLATION OF THE NOMINATION

Nomination made under Section 49(2) of the Legal metrology act, 2009 will be called off in the following situations:-

1. Notice received from Company’s Director, Concerned Controller or any such authorised officer. 
2. The person nominated, ceases to be a director of the company. He shall communicate the fact of the cessation to the Company’s Director, Concerned Controller or any such authorised officer.
3. The person nominated requests Company’s Director, Concerned Controller or any such authorised officer to cancel the nomination. The request shall be in written and complied with the Company’s Director, Concerned Controller or authorised legal metrology officer. The nomination shall not be deemed cancelled earlier than the date of the request letter.

OFFENCES MADE BY THE PERSON OTHER THAN THE NOMINATED PERSON

Any person who commits any offence or the offence has been committed with the consent of such person, he shall be guilty of that offence. However, He is not the person nominated but he shall be liable and punished for the offence committed.

Legal metrology is the scientific study of weights and measurement which came into force in 2009 in India. Now, it’s 2020 and still, legal metrology requires expertise to study all the aspects of the legal metrology. Obtaining a legal metrology licence can be complicated and time-consuming at the same time. The subject expertise of Legal Metrology India bridges the gap between the rules & act and the legal metrology procedure in a practical scenario.

Author : ELT Consultants