subject: Role of Directors or the Board of Directors (BoD) in a Company - Indian Company Law [print this page] 10. Normally, the banks or other financial institutions give huge loans to the companies and in order to protect their interests, they nominate their Directors on the Board of Companies. These directors are called nominee directors and the function of these directors is to safeguard the financial interest of the institution who nominated them and to ensure that no decision is taken by BoD which goes against the financial institution. Such directors are not considered responsible for the business of the company."
Role of Directors or the Board of Directors (BoD) in a Company - Indian Company Law
