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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.
A director can be removed for any of the reasons listed below:
Removing a director can be complicated, but with Law Suvidha it can be done with ease.
The following documents are required for the removal of the director:
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There are seven different types of directors. These include:
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.