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Termination of a director in pvt ltd co.,

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 April 2013 Dear sir / madam,

A pvt ltd company has 3 directors out of which 2 directors are shareholders of the company.

third director doesnot hold any shares nor involved in company matters.

can other 2 directors can terminate the third director by passing board resolution without receiving resignation letter from that director?

please clarify

Ajay Mishra

Ajay Mishra (Expert)
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08 April 2013 Hi

No, you can not terminate third director by only board resolution. You must comply the provision of section 284 of the Companies Act, 1956.

You also ensure your company's article about removal of director.

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