COMPANIES ACT

SECTION 2(30)

When person can be deemed to be an “officer” as contemplated in clause (30)

The term “officer”, as defined under section 2(30), includes an employee if he has been vested with the powers of financial control over one or more fields of operation of a company and, therefore, such an employee should be deemed to be falling under the category of the term “officer”. In view of this position, the employees like chief accountant, works manager, sales manager, purchase manager, estate manager, etc., should be deemed to be officers for the purpose of disclosure of debts/loans or advances in terms of Part 1 of Schedule VI.

• LETTER NO.8/17/2(30)/76-CL-V, DATED 23-8-1976.