Common use of Nominee Director Clause in Contracts

Nominee Director. Debenture trustee will have the right to appoint a nominee director on the Board of the body corporate in the event of: a) two consecutive defaults in payment of interest to the debenture holders; or b) default in creation of security for debentures; or c) default in redemption of debentures; The Nominee Director so appointed pursuant to above shall not liable to retire by rotation nor shall be required to hold any qualification share. The Company shall take steps to amend its Articles of Association, if necessary. The aforesaid power shall be exercised subject to Clause 21 of the Articles of Association of the Company wherein appointment of the Board of Directors can only be done by the President of India.