Appointment of occupier of a factory

Guest (Querist) 01 February 2017 This query is : Resolved
The position of occupier of a factory has fallen vacant.The proposal to appoint a new director as occupier will be placed at the coming board meeting.
The Factories Act,1948 stipulates that in the case of a company ,one of the directors could be appointed as occupier of the factory.
Now the Company desires to know,whether an independent director can be appointed as an "Occupier" of the factory.
Though there is no specific restriction in the Act,can an ID be involved in the day to day affairs of a factory?

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DR.VEDULA GOPINATH (Expert) 02 February 2017

Mr.Arun Kumar Maitra

The occupier under Factory legislation has been decided by Higher couts Earlier.

Normally the Mg.Director or CEO who is having the effective management or management of the whole affairs of the company shall be the OCCUPIER.
In few cases the General manager who is incharge of the factory or organisation shall be named and approved as occupier byu the Board.

In the absence of appointment of OCCUPIER the CEO and MG.Dir shall be the occupier.
The Board is welcome to appoint another director as occupier but the INDEPENDENT DIRECTOR cannot be appointed as Occupier since the ID as per the spirit of present company law is a watchdog also for the Board and the other stake holders.

Please do not mix ID in the appointment of Occupier.. Normally the working director on the Board (preferably from promoters groups) shall be Occupier
In the absence of appointment o Occupier the MD or working director shall be the Occupier of the company.

cs Dr Vedula Gopinath
advocate/arbitrator
email vgnath@gmail.com
mob 9866013121

krishna mohan (Expert) 20 February 2017
I agree with the expert advise. of Dr. V. Gopinath. I am of the view any senior management employee could be appointed as Occupier if any of the above defined categories of employees on rolls with your company and of course in consultation with your company secretary (or) expert on company secretarial matters.

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