Why Are Directors Removed for a Cause?

Company Directors Although the Companies Act, 2013 treats companies as individual persons, in reality, they require the management of real people. A director of the company is someone who is tasked with managing the affairs of the company. In most cases, the company’s Articles of Association (AoA) specify the guidelines for appointing a director. However, shareholders can also exercise certain powers when a director is appointed. An organization’s Board of Directors As a collective team of directors, the Board of Directors (BoD) of a company is responsible for decision-making and protecting the rights of all stakeholders. The removal of a […]

Company Directors: How to Remove Them

Removing a director from a company: Procedures A director might wonder if shareholders can remove him or her from a company against their will. As a simple rule, yes. Except in the following circumstances, a director may be removed by the shareholders: The Central Government does not appoint directors who are proposed for dismissal. Companies Act, 2013 Section 242 prohibits the Tribunal from appointing a director. For the Registrar of Companies to determine whether a director should be removed, each document is scrutinized twice or thrice. According to Sec 169 of the Companies Act of 2013, shareholders may remove a […]