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Remove a Director from Your Company

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Overview of Removing a Director

The performance of a director serves as the cornerstone of a company. Either a competent director may enhance your firm or an ineffective director can destroy it. As a result, shareholders must exercise caution regarding the nomination of directors. Section 169 of the Companies Act of 2013 allows a business to dismiss a director before the end of his term. Furthermore, if the Central Government selects a director, the dismissal of the director becomes ineffective.

Reasons for Removing a Director

A director can be removed for any of the reasons listed below:

  • If they get any of the disqualifications stated in the Companies Act 
  • If they miss more than 12 months of board meetings
  • If they enter into contracts or arrangements in violation of Section 184 of the Companies Act
  • If they are disqualified by a court or tribunal order
  • If they are found guilty of any crime and sentenced to at least six months in jail
  • If they have not followed the conditions and standards outlined in the Companies Act of 2013
  • If they have willingly resigned from their post.

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Documents needed for Removal of Director

The following documents are required for the removal of the director:

  • Photograph: Passport-size photo of the Director
  • PAN Card: Self-attested PAN card of the Director
  • Proof of Residency: Aadhar Card/ Voter ID/ Passport/ Driving Licence
  • Digital Signature Certificate: DSC of the ongoing and eliminated Director
  • Identity proof before-mentioned as Passport/Election card/Driving Licence/Aadhar card
  • Mobile number along with Personal and official email id of the Director
  • Notice of resignation filed with the company
  • Proof of dispatch
  • Acknowledgement form, if received.

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Frequently Asked Questions (FAQ)

There are seven different types of directors. These include:

 

  1. Residential Director
  2. Small Shareholders’ Director
  3. Nominee Director
  4. Women Director
  5. Additional Director
  6. Alternative Director
  7. Independent Director

The shareholders must file Form DIR-11 and Form DIR-12, as well as all attachments to the Board Resolution and an ordinary resolution.

Section 169 of the Companies Act of 2013 governs the dismissal of a company’s directors.

Within thirty days following passing an ordinary resolution at a general meeting, the Company must file the proper forms with all relevant attachments with the Registrar, therefore making an appropriate entry in the Company’s statutory register within the period prescribed.

If a company cannot comply with the aforementioned regulations, the firm, as well as any officer of the company who is in default, will be fined not less than fifty thousand rupees and up to five lakh rupees.