Procedure to Add or Remove Director of a Company

Under the Company Law of 2013, a company which is a private limited company can only have minimum two directors, whereas a public limited company can have minimum three directors. The profile of director falls into various different categories like Managing director, nominee director, director, additional director, etc. Shareholder has a right to remove any director before his tenure period gets expired, but the shareholder is not allowed to remove the director authorized by the Tribunal for prevention of oppression and management. But to add or remove director, there is some specific process that needs to be followed.

The procedure for removing the director of a company:

• Special notice
• Decide the date of the meeting
• Intimation sent to the Director
• Hear the reasonable opportunity
• Intimation sent by the company to shareholders

Although the process to add or remove director might look complex, but if you take help from ClicknFile, it can be easy as it has a team of financial experts who are well versed with this process and helps you to add or remove  director in the company as quickly as possible.

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Process of add or remove director of a Company

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.

See More at: article.wn.com