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A Director in a company may want to resign or the Board of Directors may want to remove the Director for several reasons. The Director of a company can also resign from the Board by filing a resignation letter with the company and also intimating the ROC with the same. Here, we will take a look at the procedure that a director needs to follow in case he wants to resign from the post of Director.
After giving notice in writing to the Company a Director may resign from a company. The Board is required to intimate the ROC of this notice within 30 days in the form of DIR-12. If the Director chooses, he can also send a copy of the resignation letter to the ROC along with the reasons for the resignation using Form DIR-11. Here is the format for the resignation letter of a Director.
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Stated below are reasons for removal of director from a company :
There are 3 ways to remove a director from a company :
1. When the Directors Tender Their Resignation
2. Director Remains Absent from the Board Meetings for 12 Months
3. Removal of Director by Shareholders
A Company can remove its directors before the expiry of its term, these powers are vested with the shareholders. Here we will talk about the process of removing the Directors of a Company. In case of Non-compliance with any one of these processes can make the decision void, if appealed in a court.
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A company can remove the authority to remove a Director by passing an ordinary resolution that is given to the Director. A board meeting will be conducted by giving notice 7 days before all the Directors.
The ordinary resolution that is passed is not to be filed with the registered.
Yes, a Director of a company can be removed without his consent under certain circumstances.
The Office of the Director may happen to be vacated by the statute, death, or under the provision of the AOA or the Shareholders agreement.
Even after the Director is removed by the company he is entitled to get the compensation damaged that are payable to him.
No, a Director who is removed once cannot be appointed as a director again.
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