Removing a Director
Provisions related to removal of director from a company have been prescribed under Section 169 of Companies Act 2013 which specifically provides for removal of director s of company. It specifies that shareholders has right to remove a director in the general meeting through ordinary resolution. If directors absents from board meeting for a year, failure to disclose his interest as per sec 184, or is convicted by court for any offence and sentenced to imprisonment for not less than 6 months or disqualified by an order of court or tribunal will be ineligible to act as director.
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Procedure for Removal of Director
3 working days for ordinary resolution
A company can, by ordinary resolution, removed a director before the expiry of his term period and he does not hold office for life. On receipt of resolution, the company must sent special notice to the concerned director and an opportunity of being heard must be given to that director before removal.
10 working days for filling DIR-12
Concerned director has right to make representation on receipt of special notice. If no reply is received from director then director can be removed by filling DIR-12 with the registrar. It will take more than 10 days.