Resignation & removal of a director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2012
If a director is to be removed by the other directors from a pvt ltd company against his wish what is the procedure.

In case a director resigns what legal formalities have to be taken care by pvt ltd company. Whether is he elgible to claim any goodwill from the company as the company has not yet closed its books of accounts from the day one ( the period is only 4 months and it is real estate company)

CA Prashant Gupta

CA Prashant Gupta (Expert)
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17 April 2012 You have to file form 32 with ROC for removal of director.

For remove any director, you have to call AGM and 51% shreholder must voted against him.

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2012
Sir you have not read the question properly. Does pvt ltd company hold AGM?

I am taking about the procedure for a director to be removed against his wish by other directors of pvt ltd company.

In case if he accepts to resign and demands for a premium on his shares to be transferred to other directors is it compulsory to accept such demand

CA Prashant Gupta

CA Prashant Gupta (Expert)
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17 April 2012 Please read the answers carefully.

Yes, every company either private or public has to hold the AGM. in special cases you have to call Extra ordinary General meeting i.e. EGM.

You have to hold EGM and 51% shareholder must voted for removal of director. Shareholders has been vested with power to remove a director not other directors.

He is removed from board but still be a shareholder. another share holders will purchase his shares and with this company has nothing to do.

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