Delegation of powers

Guest (Querist) 09 September 2013 This query is : Resolved
Can the GM(HR) of the Holding Company be given the powers to appoint, promote,terminate and hold disciplinary proceedings of the employees of its Subsidiary Companies?

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Sudhir Kumar, Advocate (Expert) 09 September 2013
subjective query.

MOA needed to be seen

Rajendra K Goyal (Expert) 09 September 2013
Academic query.

R.K Nanda (Expert) 09 September 2013
no, such powers cannot be given.

Guest (Expert) 09 September 2013
Subsidiary Companies are separate entities by law, having their own Boards to handle their internal matters. So, any company, even being a holding company, cannot exercise powers of the the HR of its subsidiary companies. Moreover, any subordinate (subsidiary company) cannot delegate powers to its controlling entity.

Dr J C Vashista (Expert) 10 September 2013
Although it is a subsidiary company whereas the GM (HR) can be delegated powers to appoint, promote,terminate and disciplinary powers with respect to the manpower employed (locally controlled) therein the subsidiary company.