Nomination of Director Under Legal Metrology Act, 2009 – A Complete Analysis

In India, Legal Metrology is a law that is ripe with complications & complexity. Earlier, the Law of Legal Metrology was called Standard Weight & Measurement Act, but in 2009, the new law is renamed as Legal Metrology Act 2009. The Government of India enforces the Legal Metrology Act and Rules via the Director at the centre, who in turn delegates his powers to the Controllers of the States for effective enforcement of the provision of the Acts and Rules. Though the compliances are simple & straight under the Legal Metrology Act, there is a lot of confusion regarding the law that results in heavy penalties. In this blog, we are going to discuss the nomination of a Director under the Legal Metrology Act 2009.

What is the Meaning of Nomination of Director under Legal Metrology Act, 2009?

On 04 October 2022, The Consumer Affairs Department, Government of India amended the Legal Metrology Rules, 2011, to reduce or lessen the compliance burden for the companies and for ease of business.

1. Now, Section 49 of the Act allows the companies to appoint any of its directors as an individual responsible for the Company. Earlier, in case of any violations under the Act, the prosecutions were initiated against the Companies’ Director even for the violation done by any branch or unit or any establishment in any branch of the Company.
2. The Department of Legal Metrology changed the Legal Metrology (General) Rules, 2011, to appoint an officer of the unit or branch or establishment in any of the Company’s branches or establishment who has the authority for controlling, planning & directing the activities of the respective establishment or unit.
3. With the amendment, companies with various branches or units or establishments in any branch can now nominate an official who has the responsibility & authority for the operations & activities of the branches or units or establishments.

Nomination of Director in Case of Association or Firms of Individuals

Section 49 of the Legal Metrology Act clearly explains the nomination of Directors by the Companies. As far as sub-section (7) is concerned, it specifies the video explanation of the nominated Director & the Company. The Company includes body corporates, including firms & associations of persons or individuals. Whereas, Directors in relation to a firm means a partner in the firm. However, it should be noted that the person shall reap the same benefits as the nominated Company’s Director.

Further, Section 49(7) of the Act keeps out all the nominated directors, Government nominated directors & honorary directors from the list.

Nomination of Directors in Case of Multiple Branches or Establishments or Units

If a Company has different branches, establishments or units, different persons may be nominated for each unit & will be liable for that particular branch or unit.

Procedure for the Nomination of Director under Legal Metrology Act

The procedure for the Nomination of a Director under the Legal Metrology Act is simple and the Company can nominate the Director of the Company to act on its behalf. For the Nomination of the Director of the Company, the Company follows Section 49(2) of the Legal Metrology Act.

1. First, the Company has to get the consent of the partner of the firm or the Company’s Director who it wants to nominate as the Director under the Act.
2. Then, the Company will nominate Directors;
3. Before appointing, the Company first needs to obtain the approval of the Company’s Director whom it wants or wishes to appoint as Director as per the Act;
4. For that, written consent of the Director is mandatory;
5. Then the Company will issue an order written in the same manner;
6. The Company will notify the Director or the Controller of the Department of Legal Metrology.

Cancellation of the Nomination of Director under Legal Metrology Act

Nomination of Director under the Legal Metrology Act^[1] made under Section 49(2) of the Legal Metrology Act, 2009 will be cancelled in the following situations:

1. The nominated person ceases to be a Company’s Director. They communicate the fact of the cessation to the Company’s Director/Concerned Controller/or any authorised officer.
2. The person nominated requests the Concerned Controller, the Company’s Director or any such authorised officer to revoke the nomination of the Director under the Legal Metrology Act. The request must be in written & complied with by the Concerned Controller, Director of the Company, or authorised Legal Metrology Officer. The nomination shall not be considered cancelled earlier than the request letter date.
3. Notice received from the Concerned Controller, Director of the Company, or any such authorised officer.

Offences Made by the Individual Other than the Nominated Person

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

Conclusion

In the ordinary business of the Company, the nomination of a Director under the Legal Metrology Act differs from the Directors’ appointments. The Company’s Director nominated under the Act takes care of Legal Metrology & every aspect of the Company’s product or services. When you consider all such aspects, you might consider that a Legal Metrology License, as vital as it is, brings along with a fair bit of complication beyond the understanding of a common person.

Read our Article:How to obtain a Dealer License under Legal Metrology?