Dear Sirs, Can we nominate name of the NRI Director as Occupier of the factory for getting Factory Licence under Factory Act, 1947? Kindly give your answer as early as possible. Thanks in advance
From India, Ahmadabad
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Dear,

According to section 2(n) of the Factories Act, 1948, an occupier is one who has ultimate control over the affairs of the factory. In the case of a company, any one of the directors shall be deemed to be an occupier. Thus, there is nowhere written that an NRI Director is not eligible to become the occupier of a factory.

Opinion submitted as requested.

Regards,

R.N. Khola

From India, Delhi
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Dear R. N. Khola, Thanks for your opinion. Is it practically correct to appoint NRI Director as occupier of the factory? Plz give your expert comment on the same.
From India, Ahmadabad
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Dear,

Previously, you have not raised this query, and therefore, I did not find it appropriate to provide my opinion or comment on this issue. It is advisable to avoid such situations as the practices in our country may vary, and hence, for the smooth functioning of the unit, it is essential to have an occupier from one of the directors of our country. They may not have the time for day-to-day general discussions necessary for the organization. Furthermore, difficulties may arise when they are unable to come to India for the finalization of challans/prosecution cases pending in courts initiated by various government officers requiring personal appearances.

I trust this brief explanation will address your query adequately.

Regards,

R.N. Khola

From India, Delhi
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