Removal of director

A Company may required to remove any director or director may resign voluntary from board then in that scenario eTaxSupport will support in you in filing form with MCA.

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Who is a Director?

Directors are people responsible for managing the activities of a Company. They are also considered as trustees to a Company. As a Company is an artificial person, decisions are to be taken by a person carrying such responsibility. Directors form a board called the Board of Directors which collectively runs a company keeping in mind the interests of stakeholders

Minimum number of Directors in a Company

The Companies Act, 2013 specifies the number of persons that as a Director should present in the company

  • A Public Company shall appoint minimum of 3 Directors

  • A Private Company shall appoint minimum of 2 Directors

  • For One Person Company, minimum number of Directors required is 1

Vacation of Office of Director under section 167

Under certain circumstances the Director's office shall become vacant. They are

  • If the Director receives disqualification specified under Companies Act, 2013

  • If he remains absent from all the Board Meetings held in a period of 12 months without making an intimation to BOD

  • He is convicted for any offense by the court for a period not less than 6 months

Process of Removal /Retirement of a Director

A Director's term of office can end by removal by the Company and by resignation.
 

  • In case of removal of a Director, special notice is to be given to the Director 14 days before the Board Meeting is held

  • In case of resignation, written letter is to be submitted by the Director

  • In both the cases DIR-12 is to filed by the Company specifying details of removal or resignation

  • DIR-11 is to be filed with Registrar of Companies within 30 days of retirement

Liabilities of a Director

As a Director plays a very important role in a Company, there are many liabilities and responsibilities towards the Company and its shareholders. A Director is not personally liable for activities of a company but in certain cases he can be held liable.

  • Fraudulent activities by the Director

  • Misstatements in the prospectus of the company where director had fair knowledge

  • Non payment of Debts and taxes

 

Therefore Director is a position that holds power in management of the company. If there is any fraud happening the Director shall be liable for such acts