Director Nomination Under Legal Metrology Act

Section 49, Nomination Process & Compliance

Director Nomination under the Legal Metrology Act

Under the Legal Metrology Act, every company engaged in manufacturing, importing, marketing, or packing of any product must comply with weight, measure, labeling, and packaging rules. To ensure accountability, the Act requires companies to nominate a responsible director who will oversee all compliance-related activities. This nominated director becomes the primary point of responsibility for ensuring that the company follows all provisions of the Act and its Rules.

If the company fails to make such a nomination, then as per Section 49(2), all key managerial personnel — including the Board of Directors, Managing Director, Manager, Company Secretary, and any officer responsible for the conduct of the company’s business — will automatically be considered responsible for any violation. This increases the overall risk for the company, as the burden of accountability falls on multiple individuals instead of one designated person.

Therefore, it is crucial that companies formally appoint a director for Legal Metrology compliance to reduce legal exposure, ensure clarity of responsibility, and maintain smooth regulatory relations. This not only protects the company but also ensures a structured internal compliance mechanism.

Section 49 of the Legal Metrology Act

Section 49 of the Legal Metrology Act deals specifically with liability in cases where an offence is committed by a company. It provides a framework for determining who within the company will be held accountable for violations of the Act. According to this section, if the company commits an offence, the person who has been officially nominated will be treated as responsible. This nominated director is expected to exercise due diligence, oversee compliance procedures, and ensure that all Legal Metrology standards are met.

In the absence of such nomination, the law takes a stricter approach. Every person who was in charge of and responsible for the conduct of the company’s business at the time of the offence can be made liable. This includes senior management and officers who may not have directly committed the offence but were responsible for the functioning of the company. The company itself is also held liable, and penalties may be imposed both on the entity and its officers.

The Act emphasizes the importance of clarity and accountability within the organizational structure. Companies must therefore mutually agree on who will be the responsible director and must issue a formal nomination to the Legal Metrology Department. This nomination ensures that liability rests with the designated person and prevents unnecessary legal implications for other directors or officers who are not involved in day-to-day compliance.

This nomination remains in effect until it is cancelled by the company, withdrawn by the nominated director, or until the person ceases to be associated with the company. Furthermore, if the company is convicted and a penalty is imposed, the court may direct the company to publish the penalty details in newspapers at its own expense, making compliance and proper nomination even more important.

Registration Procedure for Director Nomination

The nomination of a director under the Legal Metrology Act must be completed through a formal registration process. This involves preparing and submitting several documents along with a prescribed nomination form. The company must pass a board resolution authorizing the nomination, and this resolution must clearly indicate the director’s willingness to assume responsibility for compliance under the Act.

The following steps are typically involved in the registration procedure:

  • 1. Preparation of Nomination Form: The company must complete the nomination form specified by the Legal Metrology Department, providing full details of the nominated director, including personal information and designation.
  • 2. Board Resolution: A formal resolution must be passed by the Board of Directors authorizing the nomination. This document is mandatory and must be signed by authorized personnel.
  • 3. Collection of Identity and Address Proofs: Documents such as PAN, Aadhaar, passport, or other government-issued IDs are required for verification.
  • 4. Declaration by the Nominated Director: The director must submit a declaration stating that he or she agrees to take responsibility for compliance.
  • 5. Submission to Legal Metrology Department: All documents are submitted physically or through the online portal, depending on the state’s requirements.
  • 6. Verification and Approval: The Legal Metrology Officer reviews the documents and may request clarifications or additional details before approving the nomination.
  • 7. Issuance of Nomination Certificate: Upon successful verification, the department issues an acknowledgment or certificate confirming the nomination.

The entire procedure may vary slightly from state to state, but the core documentation and compliance requirements remain consistent across India. Proper filing ensures that the company remains legally compliant and avoids penalties.

Nomination Responsibilities and Validity

Once a director is nominated under Section 49, he or she becomes the individual legally responsible for overseeing and ensuring compliance with the Legal Metrology Act. This includes monitoring labeling requirements, package declarations, weights and measures accuracy, import permissions, and adherence to all general compliance rules applicable to pre-packaged commodities.

The nomination remains valid until one of the following occurs:

The nominated director resigns or ceases to hold office within the company.

The company issues a cancellation request to the Legal Metrology Department.

The nominated director submits a written request seeking withdrawal from the nomination.

The Legal Metrology Department cancels the nomination for non-compliance or incorrect information.

Upon any change in the nomination, the company must promptly file updated details with the department to avoid compliance gaps. Failure to maintain accurate nomination records can result in penalties, and the company may also be subjected to legal action for misrepresentation or non-compliance.

Professional Support and Compliance Assistance

Legal Metrology compliance involves multiple steps, documentation requirements, and periodic renewals or updates. Companies often seek professional assistance to ensure that nominations, filings, and documentation are completed accurately and on time. Expert support helps reduce complexities, avoid penalties, and maintain seamless operations.

Professional services typically include:

Advising on correct compliance procedures under the Act and Rules

Preparation and vetting of nomination documents and declarations

Drafting the board resolution for director nomination

Coordinating with the Legal Metrology Department during verification

Providing legal representation in case of notices or inquiries

Guiding companies through renewal or change in nominated personnel

With the growing complexity of Legal Metrology regulations, professional support ensures that companies stay compliant, avoid legal pitfalls, and operate with clarity and confidence. This becomes especially important for businesses involved in manufacturing, importing, packing, or selling products where accurate measurement and labeling are mandatory.

Frequently Asked Questions (FAQ)

Director nomination is a formal appointment of one responsible director to ensure compliance with the Legal Metrology Act. This person becomes legally accountable for all weight, measure, packaging, and labeling compliance.

Section 49 states that the nominated director is held responsible for offences committed by the company. If no nomination exists, all directors and key managerial personnel become liable.

Yes. Any company involved in manufacturing, importing, packing, marketing, or selling regulated products must nominate a responsible director.

Any director who understands compliance, is part of company management, and is willing to take full responsibility under Section 49.

Nomination form, board resolution, director KYC (PAN/Aadhaar), nomination declaration, incorporation documents, and authorized signatory letter.

The nomination remains valid until the director resigns, the company cancels it, or the department withdraws approval.

Yes. A company may change the nominated director anytime by submitting revised documents to the Legal Metrology Department.

All directors and responsible officers can be penalized. The company may face legal consequences, fines, or product seizures.

Typically 3–10 working days, depending on the state and document accuracy.

No. Filing is mostly online. Physical presence is not required unless verification is needed.