User Menu. Company Law Articles. Through this article, we are going to discuss the procedure for Removal of director in brief: 1. Mention in the notice of the resolution to be moved at the annual general meeting, the fact of the representation having been received; and Send a copy of the representation to every member along with the notice of the meeting if the representation has been received before sending the notice of the meeting or separately if the representation has been received after sending the notice of the meeting.
Tags: Companies Act , Companies Act Name : Adv. Bhushan Bajaj. Member Since : 09 Nov Total Posts : 9. View Full Profile. A detailed provisions for removal of director is given under section of the Companies Act, as per which, shareholders of the company can remove director of the company not being a director appointed by the Tribunal under section , before the expiry of the period of his office after giving him a reasonable opportunity of being heard: Provided that nothing contained in this sub-section shall apply where the company has availed itself of the option given to it under section to appoint not less than two thirds of the total number of directors according to the principle of proportional representation.
It is true that shareholders can remove director of the company, but there are few vital situations where a director can be removed as under-. As per sec of Companies Act, if directors does not attend board meeting for 12 months starting from the day on which he was absent at the first board meeting even after giving due notice for all the meetings, it will be deemed that he has vacated the office and a Form DIR — 12 will be filed on his name and his name will b removed from the Ministry of Corporate Affairs.
Company has power to remove director suo moto by complying section of the Companies Act, by issue of special notice under Companies Act, Removal of director needs a specific procedure to be followed in order to remove his data from Ministry of Corporate Affairs MCA Following is step by step procedure for directors removal. Sec of Companies Act, specifies that a special notice must be issued atleast 14 days before the concerned meeting excluding the day on which a notice is served.
The second step is informing all the members of the company by issue of notice to members of company in the same way as it does in case of any general meeting. Company should ensure that notice is issued to all shareholders of the company.
Once the company intimates Shareholders through issue of notice, the third step is sending an intimation to the proposed director to be removed from the board of the company. Get Expert Assistance Thank You for sharing your details. Our experts will get in touch with you shortly. You might be interested in Registration mistakes that startups make Section AB Which business structure is best for you?
Get an Expert. Was this article helpful? If the company fails to do so, the following penalties will apply:. Here is why you should choose Vakilsearch for removing a director from your company:. All rights reserved. Please note that we are a facilitating platform enabling access to reliable professionals.
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