Clarification

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CS Tukaram Jadhav (Querist)

07 July 2013 Dear sir ,
please suggest me with relevant provisons .

Can A pvt co., can incorporate an article "To resign a Director if all other directors request by writting"

Ajay Mishra

Ajay Mishra (Expert)

08 July 2013 Hi

Yes, you can insert such section, but when you will insert that clause in your AOA, there after you can not remove the director on other basis.

So make your company's article in accordance with the provisions of section 9.

The following categories of directors can not be removed by a company under section 284 of the Act:—
(a) a director appointed by the Central Government under section 408;
(b) a nominee director of a public financial institution which is by its charter empowered to nominate a person as a director or to remove him notwithstanding any power contained in any other Act;
(c) a director in a private company holding office for life on 1st April 1952;
(d) a director coming within the purview of directors appointed according to the principle of proportional representation under section 265 of the Act.
A person appointed as a life director or permanent director by the Articles or by an agreement is nevertheless removable by the company in general meeting and has no security of tenure in office. While the shareholders have no power, apart from that given in the statute or the Articles, to intervene in the management of the company's affairs, this section is designed to enable them to control the directors by their removal.
A company has power under section 284 to remove a permanent director even if articles of association put restrictions on removal of the permanent director.

Message likes : 1 times

CS Tukaram Jadhav

CS Tukaram Jadhav (Querist)

08 July 2013 thanks alot sir, for your valuable suggestions

Ajay Mishra

Ajay Mishra (Expert)

08 July 2013 My Pleasure........

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