Procedure For Removal of Director Before Expiry of His Term

     

As per the provisions of Section 169 of Companies Act 2013 A company may, by ordinary resolution, remove a director, not being a director appointed by the Tribunal under section 242, before the expiry of the period of his office after giving him a reasonable opportunity of being heard.

Procedure For Removal of Director Before Expiry of His Term

1.      A special notice shall be required of any resolution, to remove a director under this section, or to appoint somebody in place of a director so removed, at the meeting at which he is removed.

2.    On receipt of notice of a resolution to remove a director under this section, the company shall forthwith send a copy thereof to the director concerned, and the director,
whether or not he is a member of the company, shall be entitled to be heard on the resolution at the meeting.

3.    Where notice has been given of a resolution to remove a director under this section and the director concerned makes with respect thereto representation in writing to the company and requests its notification to members of the company, the company shall, if the time permits it to do so,

(a) in any notice of the resolution given to members of the company, state the fact of the representation having been made; and

(b) send a copy of the representation to every member of the company to whom notice of the meeting is sent (whether before or after receipt of the representation by the company), and if a copy of the representation is not sent as aforesaid due to insufficient time or for the company’s default, the director may without prejudice to his right to be heard orally require that the representation shall be read out at the meeting:

Provided that copy of the representation need not be sent out and the representation need not be read out at the meeting if, on the application either of the company or of any other person who claims to be aggrieved, the Tribunal is satisfied that the rights conferred by this sub-section are being abused to secure needless publicity for defamatory matter; and the Tribunal may order the company’s costs on the application to be paid in whole or in part by the director notwithstanding that he is not a party to it.

4.   Hold and convene a General meeting to pass an Ordinary resolution for the removal of director.

5.    In case of listed companies, file a copy of the proceeding of the general meeting in the Stock exchange (s) where the securities of the company are listed.

6.  File e-form no. DIR-12 with the Registrar of Companies within 30 days of passing the resolution.

7.   A vacancy created by the removal of a director under this section may, if he had been appointed by the company in general meeting or by the Board, be filled by the appointment of another director in his place at the meeting at which he is removed, provided special notice of the intended appointment has been given under sub-section (2).

8.     A director so appointed shall hold office till the date up to which his predecessor would have held office if he had not been removed.

9.   If the vacancy is not filled under sub-section (5), it may be filled as a casual vacancy in accordance with the provisions of this Act, Provided that the director who was removed from office shall not be re-appointed as a director by the Board of Directors.

Related Post :

Special Notice For Removal of Director

Draft Board Resolution For Removal of Director

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