The Reasons and Methods of Removing Directors
In most cases, the shareholders of the company can remove a director from the post based on the Company Act. This is when he is removed from his position even before the expiry of his tenure. In case the director is appointed by the Central Government we will tell you what to do. In the scenario, if you want a removal you will have to file for the same with the MCA. The Roc will look into the details of the removal with the greatest care. We at Accounting4you will suggest the hiring of the company secretary service to take the utmost care of the issue.
You may need to Remove Directors and as per the Company Act 2013, the removal of the director is highly possible. At the same time, the director indeed has the authority can challenge the decision of removal from all aspects. This in the long run can give way to plenty of legal adversities. We at Accounting4you are in the positing to state that according to section 167 in matters of the Company Act 2013 if the director is not participating in any board meeting for 12 months and that too without giving the proper notification, then he has to vacate his office at the earliest.
There is the Procedure for Removal of Directors under Companies, and following the same the directors are asked to resign for more than one reason as mentioned in the structure. However, we have section 169 of the company’s activity in which case the shareholder has the power to remove the director with the passing of the ordinary resolution in the general meeting. Special notice should be issued with the intent to remove the director with the voting of certain members of the company. The notice has to be passed before 14 days of the concerned meeting where it is to be decided when and how the director is to be released.
We at Accounting4you will provide with the special notice after it is rightly signed by the member of the company. Here the members should not be lesser than one percent of the whole voting power or the holding of the shares and here an aggregate amount of five lakhs should be paid up with the issuing of the notice. After you receive the notice we shall notify you regarding the reasons for eliminating the director and this should happen seven days before the actual meeting.
You have the actual Process for Removing a Director and we will tell you how to execute things right. For the Removal of the Director in the Company, we will tell you about the certified steps that will help in making the whole process easy to follow and execute. Another important thing is that when you plan for the removal you should at the same time arrange for a replacement in time. The person should be equally qualified and legitimate for the post. He must be able to justify the tasks appointed to him in time.