Can an NRI Director Be Named as Factory Occupier for License Under Factory Act?

Dear Sirs,

Can we nominate the name of the NRI Director as the Occupier of the factory to obtain a Factory License under the Factory Act, 1947? Kindly provide your response as soon as possible.

Thanks in advance.

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

Dear R. N. Khola,

Thanks for your opinion. Is it practically correct to appoint an NRI Director as the occupier of the factory? Please give your expert comment on the same.

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