A director can only be removed by the company of he incurs any of the disqualifications specified under the Companies Act, 2013.
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A company owns the rights if to remove a director if he provokes any of the disqualifications mentioned in the Act, enters into the contracts or arrangements that go against the provisions of section 184, or if he absents himself from the board meetings for over 12 months, imprisoned for over 6 months, or is disqualified by an order of the court.
By an ordinary decision, a Director can be removed before the completion of his period of office. Provided, he does not hold office for life. A special notice of any decision must be sent by the company to the concerned director.
The company has to wait for some response from the concerned Director if in any case, no response is received; a special notice should be given and through member’s approval the person can be removed. The company would have to File a DIR-12 with the Registrar of Companies, later within a time frame of 10-15 days, the Director will be removed.
The default option for start-ups and growing businesses as only private limited companies can raise venture capital.
The default option for start-ups and growing businesses as only private limited companies can raise venture capital.
The default option for start-ups and growing businesses as only private limited companies can raise venture capital.
If you are willing to remove a Director, you would need to serve a notice period to hold onto an Extraordinary General Meeting with the members of the company where an ordinary decision will be considered for the removal of the director.
As per the section, 284 (2) of Act, a director of the integrated company can be removed before the completion of his stint by:
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