The director is like a driver of a bus who drives carefully on every type of the road. Hence, the presence of a director is very crucial. Appointment of a Director is not just an important managerial necessity, but also a procedural need that has to be fulfilled by every organization. Add or remove director, should be done according to the companies act only.
How to appoint a Director?
Usually, a private limited company and a public company or a subordinate of a public company, 2/3 (two-third) of the total number of the directors can be appointed by the shareholders. Remaining 1/3 can be appointed in agreement with the manner described in the given article for this.
Removal process of a director
The removal process it also falls under the companies act. A director can be removed by a common decision of the AGM or annual general meeting after a special notice has been given, before the termination of his tenure of office. Though, this is not valid to Directors appointed by the Central Government or the Directors appointed by the comparative representation.
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