Generally, the Board of Directors of a company acts as an agent for the management of the company as a whole, working on behalf of its shareholders and shareholders as a whole. As a result of the Companies Act, of 2013, they now have certain powers to manage the company effectively. Among these important powers is the ability to remove a director from office. Are Directors Removable on What Grounds? A director can be removed from his/her position by the shareholders for the following reasons: A director who has become insolvent A director was convicted of a crime and sentenced […]
What Is a Director Removal ?
A director is removed for cause when the board and shareholders of a company decide to remove them What Is a Board of Directors? State laws require corporations to have a board of directors, who meet regularly to oversee their operations. Boards of directors are essential to a corporation’s success. A corporation’s success depends heavily on a board of directors that truly acts in the best interest of a company, its employees, and its shareholders. In order to keep a corporation in good standing, the directors on a board are elected by the shareholders. They are responsible for ensuring that […]