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It is possible to add or remove a director from the company at any time. There are different reasons why a director is removed and there are three different procedures based on the reason. Irrespective of that, Single Key Advisory can help you with removing a director from your company and make the whole process easy for you.
There are 3 ways to remove a director from a company:
This is the simplified version of the whole process. The removal procedure has to be carried out carefully and should follow the procedure laid down in the Companies Act.
Send notice to its members clear seven days before the meeting, along with a copy of the representation copy.
The member who proposes the dismissal should provide a 'Special Notice' of a resolution to remove a director at least 28 days before the meeting at which the director may be excluded.
There may be no alternative option left for the Company than to seek the removalof Director by consulting to the Board and with a majority of shareholders under (AOA) of the Company.
Under the Companies Act, 2013, in a private company, a shareholder can appoint a director, so ideally only they hold the authority to remove directors. However, in proprietary companies, the removal of director can be commenced by a majority of directors if the constitution permits it.
While carrying change in the Board of directors, the Company must obtain consent from its Board and members, as required by passing a resolution and statutory limit after removalof Director or resignation.
No, even after the end of the tenure as director, a person can hold the shares in the Company only if it is not subscribed as a condition to appointment as provided by AoA.
The shares of the Company shall be transferred by way of completing the Share Transfer deed and by affixing the stamps as per the rates mentioned in the Stamp Act of the concerned State after the change.
As per Notice of 'ROC u/s 248(1)', this notice is the first step toward struck off of Company. If 'Company' fails to reply such notice within 30 days of publication of note, ROC shall strike off the name of Company in its records.
As per Section 166 Director has to adhere to the duties mentioned in such a section. In case the Company got struck off, they shall be personally responsible for such statutory liabilities.
In 30 days of date of the resignation, if the company fails to or doesn’t file the 'form DIR-12', a specific concrete Government fees- Penalty will be charged.