A company can now appoint an officer who will be legally responsible for its different branch or unit.
By Staff Reporter | October 5, 2022 | 9:00 pm
Credit – AarBee
A company can now appoint an officer who will be legally responsible for its different branch or unit
And while festivities were on in the east, an amendment to Section 49 of the Legal Metrology Act, 2009 allows companies to nominate any one person responsible for the business of the company in a different establishment / branch / or unit.
Companies under Sub-section 2 of Section 49 of the Legal Metrology Act, 2009 were required to nominate any of its directors as a person responsible for the business of the company.
Now the companies having different establishments / branches / or units in any establishment or branch can now nominate an officer who has the authority and responsibility for planning, directing and controlling the activities of the establishments or branches or different units.
With this amendment, the nominated officer has the authority and responsibility for the operations and activities of the establishment / branch / or unit, in place of the director of the company, who is not directly involved in day-to-day activities of that establishment or branch.
The Department of Consumer Affairs, Government of India, amended the Legal Metrology (General) Rules, 2011 for ease of doing business and reducing the compliance burden for industries.
Earlier, in case of violations under the Legal Metrology Act, prosecutions were initiated against the director of a company even for violation done by any establishment or branch or unit in any establishment or branch of the company.
This has come following demands from various industries to allow them to nominate a person who actually has the authority and responsibility of the establishment / branch / unit in any establishment or branch, and not the director, so that the notice for any violation done by the establishment or branch or unit is not issued to the director.
