How Does Removal Of A Director Work For You?
A notice of resolution to remove a director can be sent at any time during their term unless the article of association states that they are a lifetime Director.
Removing a Director
A company can remove a director if he incurs any of the disqualifications specified under the Act, absents himself from board meetings over 12 months, enters into contracts or arrangements against the provisions of section 184, is disqualified by an order of a court or Tribunal, or is convicted by a court of any offence and sentenced to imprisonment for not less than six months.
Procedure for Removal of Director
3 Working Days
By ordinary resolution, the director can be removed before the expiry of his period of office, provided he does not hold office for life. Special notice of any resolution to remove a director must be sent by the company to the director concerned. The director (whether or not he is a member of the company) shall be entitled to be heard on the resolution at the meeting.
10 Working Days
The company should wait for an explanation from him. If no reply is received, special notice must be given and, through members’ approval, the director can be removed. File the DIR-12 with the Registrar of Companies. Within 10 to 15 days, the director will be removed.
- How Does Appointing A Director Work For You?
The board of directors can remove an existing director and appoint a new one provided
it is provisioned in the article of association
- Adding a Director?
As per section 260 and section 284 of the Companies Act, 1956, the Articles of Association of a company are the source of authority from where the Board of Directors draws the right to add new directors to the Board or remove existing ones. The Articles of Incorporation must provide for the addition of Directors. The person appointed must be eligible as per the relevant clauses in the Articles of Association and must give his consent to be a director in written form which the company must register with itself.
Procedure for Adding a Director
3 Working Days
The newly-appointed director must apply for a Director Identification Number by filing E-Form DIN-1 with the Ministry of Corporate Affairs, Government of India.
4 Working Days
A resolution needs to be passed by the board, approving the appointment of a director. Once this is done, we will file Form DIR-12 with the Registrar of Companies.
that your doubts are cleared before they even arise.