Remove a Director
A private corporation must have at least two directors, while a public corporation must have at least three. A private firm can fire a director if he or she commits any of the Act’s incompetence’s and fails to attend board meetings for more than a year. It makes agreements or arrangements in violation of section 184’s provisions. However, it is either expelled by a court or Tribunal, or it is convicted of a crime and sentenced to a minimum of six months in prison by a court.
Process for Removing a Director
The shareholders have the power to remove a company's directors before the expiration of their term. The process of dismissing a company's directors will be discussed here. If the decision is challenged in court, non-compliance with any of these processes can render the ruling null and void.
Prerequisites for Entry
A notification must be sent to begin the process of removing Directors.
Issuing Notice
This notice should be processed by shareholders with a minimum voting power of 1% or by someone who owns shares with a total value. notice must be delivered to the Company at least 14 days prior to the meeting at which the resolution will be adopted.
Members' Notice
The notice should be served at least seven days, or one week, before the meeting. If the shareholders are unable to deliver the notice, it can be published in one English newspaper and one vernacular newspaper. The notice must be posted on the company's website at least seven days before the meeting date.
In writing, representation
The concerned director has the right to appeal the removal notice. The director has the option of requesting that the corporation send the representation to all members. A note should also be sent to the members informing them of the representation. If the company is unable to reach all of its members, the director may request that this representation be read aloud.
The Tribunal will hear your case
If the organisation or any aggrieved person decides not to transmit the representation to the members or read it out in the meeting, an application to the tribunal can be filed to have the process nullified. If the tribunal concludes that the Director is abusing this right for defamatory purposes, the proceeding can be terminated. This director is also given the authority to issue an order requiring the director to pay the company's application costs.
Documents Required for Remove a Director
- Photograph: The Director will be photographed in passport size.
- PAN Card: The Director’s PAN card must be self-attested.
- Aadhar Card/ Voter ID/ Passport/ Driving License are examples of proof of residency.
- DSC of the current Director and DSC of the Director who will be eliminated/removed
- Passport/Election card/Driving License/Aadhar card are examples of identity evidence.
- Director’s phone number and personal and official email addresses
- If the Director is a non-resident of India, it is necessary to get all documents apostilled.
- The company has received a notice of resignation.
- Proof of delivery
- If the form has been received, it will be acknowledged.
Reasons for a Director's Removal
- If they are found guilty of any of the disqualifications listed in the Companies Act,
- If they miss more than a year’s worth of board meetings, they will be fired.
- If they violate Section 184 of the Companies Act by entering into contracts or agreements, they will be prosecuted.
- If a court or tribunal rules that they are ineligible,
- If they are found guilty of any crime and sentenced to at least six months in prison by a court,
- If they have not followed the rules and processes set forth in the Companies Act of 2013, they will be fined.
- If they have freely resigned from their position.
OUR PRICING PLANS
Standard
₹ 14,999
- complete company incorporation
- Certificate of incorporation (COI)
- Permanent account number (PAN)
- tax deduction account number (TAN)
- director identification number (DIN)
- digital signature certificate (DSC)
- memorandum of association (MOA)
Gold
₹ 16,999
- complete company incorporation
- Certificate of incorporation (COI)
- Permanent account number (PAN)
- tax deduction account number (TAN)
- director identification number (DIN)
- digital signature certificate (DSC)
- memorandum of association (MOA)
- articles of association (AOA)
- Bank account opening
- GST registration
- MSME / UDYAM registration
Platinum
₹ 19,999
- complete company incorporation
- Certificate of incorporation (COI)
- Permanent account number (PAN)
- tax deduction account number (TAN)
- director identification number (DIN)
- digital signature certificate (DSC)
- memorandum of association (MOA)
- articles of association (AOA)
- Bank account opening
- GST registration
- MSME / UDYAM registration
- Share certificate issue
- company commencement form filling