PROCEDURE FOR REMOVAL OF A DIRECTOR AS PER THE COMPANIES ACT, 2013

Ever thought, how directors can get removed as under Companies Act, 2013? Read on to find out.

• A special notice under section 115 is required to be given to the company for removal of directors, at least 14 days before the date of meeting at which it is to be moved exclusive of the day on which notice is served and the day of meeting.

• On receipt of notice of a resolution to remove a director, the company shall forthwith send a copy thereof along with a representation if any received from the director concerned and if a copy of the representation is not sent as aforesaid due to insufficient time or for the company’s default, the director shall be entitled to be heard on the resolution at the meeting.

• Hold and convene a general meeting to remove a director by passing an ordinary resolution.

• Advice the Chairman that the resolution can be moved only if the person who has given notice of the resolution is present and moves the same at the meeting and that the director sought to be removed has got a right of being heard at the meeting even if he is not a member of the company.

• If the resolution is approved, inform the director concerned about that fact of his/her removal.

• File Form DIR 12 within 30 days of the removal of the director with the Registrar of Companies.

That was all that we had to share about the procedure for Removal of a Director as per The Companies Act, 2013. So, what happens when you have to deal with such issues? You contact us, MS Associates, a Chartered Accountant firm in Bangalore, we are equipped with the skills to handle such assignments.