Context:
A Nominee Director is often conflicted in regard to choices to be made while taking decisions. In the situation described hereinbelow, a Nominee Director has to grapple with choices that are not unmixed blessings.

• Company XYZ has taken loans from Bank A and Bank B.
• The outstanding amounts of the 02 (two) loans are identical.
• Bank A has a Nominee Director on the Board of XYZ
  Point to ponder
• What, if any, is the role of the Nominee Director in the following situations?
  1. Situation 1:
     • XYZ defaults in its installment to Bank B, but has paid the installment to Bank A on time.
  2. Situation 2:
     • Rate of interest charged by Bank A on the loan is 15%.
     • Rate of interest charged by Bank B on the loan is 18%.
     • XYZ repays the loan of Bank B, and delays/ defaults on its repayment to Bank A.
  3. Situation 3:
     • XYZ services the two loans on time but defaults in payments of statutory dues.