Removal of director

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Amol

Director

23 Points Posted on 03 January 2017

Dear Members, I am running a Private Limited Company having 3 directors including me. All directors have equal numbers of shares. Now out of 3 directors 2 Directors want to remove 3rd Director as he is made mismanagement in company's business and not coming to office from last 3-4 months as we informed him about his fraud with company. Also we told him to resigned but he is not resigning from company. Now please help me and give me the way so we can remove him from company and tell me how we can get the transfer of his shares Please do the needful

Replies (3)

prasad_1905

Chartered Accountant

42 Points Posted on 03 January 2017

members had power to remove director under section 169. As per that section, you have to call an egm and pass an ordinary resolution to that effect. Also special notice is required.

Amol

Director

23 Points Posted on 03 January 2017

Thanks

But please explain me a procedure in detail.

Also provide me details about share transfer from director to be removed

prasad_1905

Chartered Accountant

42 Points Posted on 03 January 2017

convene board meeting for calling egm. obtain special notice from a member for removal of director. give notice to member for convening egm. convene egm. pass the resolution for removal of director. file the resolution with roc in form dir12.

form sh 4 is required to be executed for transfer of shares. consent of transferor is mandatory.