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    Appointment of Nominee Director

    Posted By : Sachin / Published on : 22-May-2021 11:03 AM / View : 823 / Comment : 0

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    Dear Members,

    Please share your views on the following.

    As per the strict construction of Section 161(3) a nominee director can be appointment by any Institution (the word is institution and not financial institution, the word Financial Institution is defined in the Act, whereas mere Institution is not.)

    As per some dictionaries, the word institution means an organization or corporation, whether for profit or not.

    On this background, can an investor company appoint a nominee director on the investee company? If yes, is there a requirement of pre-existing agreement for appointment of nominee director or mere fact that there is interest of investor in investee company, which investor company wants to protect by appointing nominee director, is a sufficient reason to appoint nominee director.

    Please guide.
    Read more on : director nominee appointment

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