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Remove a director from a company

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THINGS YOU SHOULD KNOW WHILE
REMOVING A DIRECTOR OF A COMPANY
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REMOVING A DIRECTOR
OF A COMPANY
A firm has the right to remove a director
from its board. The 2013 Companies Act
lays forth the guidelines for such removal.
This article concisely summarizes all the
key details about removing a director.
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If the director has fallen into
bankruptcy.
If the director has been adjudged
guilty by a court and sentenced to
at least six months in prison.
EXPLAINING THE GROUND ON WHICH YOU
CAN REMOVE A DIRECTOR IN A COMPANY
For the following reasons, the shareholders may remove
a director:
If a judge has ruled that the
director is mentally ill.
If the Director has been deemed
ineligible to hold such a position
by the Tribunal or Court.
Lack of a Director Identification
Number by the Director.
Regarding the inability to follow
the Companies Act of 2013's rules.
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If the director resigns of his own
will
THE PROCESS OF REMOVING
A DIRECTOR IN THE COMPANY
The board of directors has the power to remove a
If the board decides to remove
the director on a suo-moto basis
director if any of the three scenarios listed below
happen:
If the director fails three consecutive board
meetings or any board meeting over 12 months.
It is assumed that the director has left the office.
The RoC must then receive the form DIR-12.
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MANDATORY REQUIREMENTS TO BE FOLLOWED TO
REMOVE THE DIRECTOR OF THE COMPANY
A special announcement must be made before a director is terminated.
The members owning at least 1% of the voting power or the members holding shares on
which a total of at least 5 lakhs has been paid up to the date of the notice must sign the
special notice, either individually or collectively.
The Board of Directors shall not appoint the disqualified director again.
In the same general meeting in which the director was ousted, a new director will be
appointed to fill the vacancy left by the departing director.
The newly chosen director will serve until the term of his predecessor in office expires.
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CONCLUSION
The process of removing a company director is
delicate, and it must follow the steps outlined in the
Companies Act of 2013, passed in 2013. Failure to do
so could result in a court declaring the ruling invalid.
Companies might choose to use the services of
experts
like
Lawgical
Business
India
to
avoid
situations like this and the penalty for not submitting
forms. Lawgical may assist with drafting resolutions,
submitting required forms on time, and filing them
with the RoC to hasten the removal procedure
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