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Sendhati Ayyanar Ramalingam
in Corporate Law Administrative Law
Asked September 29, 2017

Role & responsibility of a Nominee Director in an OPC

  • 1 Answer

Dear sirs, I am proposing to start an One Person Company which is already run as proprietorship concern. In OPC beyond the Director an nominee director is must, my question is can I nominate my wife as an nominee of my company? who working as a PG teacher in a government school. Is it legally right? In an OPC nominee director has no remuneration. After the director's inability he can come to the post and get the benefits. Thanking You\ with regards R.S.Ayyanar.

Answer 1

In order to incorporate a person as the nominee director the most essential requirement is to obtain a nominee consent form, INC-3.This has to be filed with the Registrar of Companies. In the event of death of the Director, the nominee shall be entitled to all shares and liabilities of the One Person Company.  The Nominee shall have no power until the original director becomes incapable of entering into contract. As per the Companies (Incorporation) Rules, 2014 say only a natural person shall be eligible to be a nominee. Such person may not be a non-resident or a Foreign Citizen resident.

There are no restriction as to government employees being nominated as directors. However, what is essential is that such person’s course of employment with the Government of India must not have a conflict of interest with that of the agenda of the company.

Agree Comment 0 Agrees over 3 years ago

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