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TMI Blog'ADDITIONAL DIRECTOR' OF COMPANY AS AN 'OCCUPIER'X X X X Extracts X X X X X X X X Extracts X X X X ..... 'ADDITIONAL DIRECTOR' OF COMPANY AS AN 'OCCUPIER' X X X X Extracts X X X X X X X X Extracts X X X X ..... ointed as an 'occupier' under the Factories Act, 1948. Since no specific category of directors is specified in the said section, it can be inferred that any kind or any one of directors can be appointed as an 'occupier' of the company. Director's Appointment The Directors appointed at annual general meeting of the company are required to be appointed in accordance with the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions of Sections 255, 256, 257 and other applicable provisions of the Companies Act, 1956. Additional Director The appointment of 'Additional Directors' has to be as per the provisions of Section 161(1) of the Companies Act, 2013. This provision came in force w.e.f 12th September, 2013. Accordingly, the board of directors, if authorized by the articles of association may appoint an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y person, other than a person who fails to get appointed as a director in the general meetings, as an additional director at any time. In the instant case, querist company's articles of association provide for such authorization. The concept additional director has emerged from the basic gene 'directors' only and all the provisions applicable to directors in Companies Act or other leg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... islations shall also be applicable to additional directors. Even though all the directors cannot be designated as additional directors, but all the additional directors can be appropriately termed and considered as directors of the company and at par with other type of directors. Duties / Responsibilities of Directors The duties and responsibilities of directors are spread over different provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of the Companies Act. Such duties and responsibilities are equally applicable to the all other kind of directorships like additional directors, alternate directors, independent directors etc. In the Companies Act, 2013, a new Section 166 relates to the 'duties and responsibilities of the directors' but it has not come into force as of now. These duties, inter alia provide for follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing: * Subject to the provisions of this Act, a director of a company shall act in accordance with the company's Articles. * A director of a company shall act in good faith in order to promote the objects of the company for the benefit of its members as a whole and in the best interest of the company, its employees, the shareholders, the community and for the protection of environment. * ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A director of a company shall exercise his duties with due and reasonable care, skill and diligence. * A director of a company shall not involve in a situation in which he may have a direct or indirect interest that conflict, or possibly may conflict, with the interest of the company. * A director of a company shall not achieve or attempt to achieve any undue gain or advantage either to himse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lf or to his relatives, partners, or associates and if such director is found guilty of making undue gain, he shall be liable to pay an amount equal to that gain to the company. * A director of a company shall not assign his office and any assignment so made shall be void. All the duties and responsibilities of directors are equally applicable to all the other kind of directorships like additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal directors and so on in addition to the duties specifically mentioned in respective sections of the Companies Act, 1956 for such directorships.
Conclusion
To conclude, it can be stated that -
* The duties and responsibilities of additional director are same as of other directors, and
* Additional director can be appointed as an 'Occupier' under the Factories Act, 1948. X X X X Extracts X X X X X X X X Extracts X X X X ..... arly articles for knowledge sharing by authors, experts, professionals ..... X X X X Extracts X X X X X X X X Extracts X X X X
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