Director removal

A company by passing ordinary resolution can remove its director before expiry of his period of office after giving him the opportunity of being heard. However, an independent director can be removed only after passing a special resolution.

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Procedure for removal of a director in private limited company

Why CharteredMunshi

We value all our customers and attempt to offer our services as though they were our 'first client'. We ensure that the process is fast and smooth. Unlike others, we do not outsource our work and offer in house services coming through our specialists who are experts in their respective fields. We will assign you a dedicated manager who will support you from the start to end of the process and address any queries that you might have.

FAQs (Frequently Asked Questions)

On what grounds a director can be removed from a company?
Disqualifications mentioned in section 164(1) of companies act are as follows;
  • He is of unsound mind and stands so declared by a competent court;
  • He is an undischarged insolvent;
  • He has applied to be adjudicated as an insolvent and his application is pending;
  • He has been convicted by a court of any offence, whether involving moral turpitude or otherwise, and sentenced in respect thereof to imprisonment for not less than six months and five years has not elapsed from the date of expiry of the sentence. Provided that if a person has been convicted of any offence and sentenced in respect thereof to imprisonment for seven years or more, he shall not be eligible to be appointed as a director in any company.
  • An order disqualifying him for appointment as a director has been passed by a court or Tribunal and the order is in force;
  • He has not paid any calls in respect of any shares of the company held by him, whether alone or jointly with others, and six months have elapsed from the last day fixed for the payment of the call;
  • He has been convicted of the offence dealing with related party transactions under section 188 at any time during the last preceding five years; or
  • If he accepts directorships more then allowed under companies act.
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