Removal of Director

Pvt ltd 277 views 3 replies

kings22

Shareholder

167 Points Posted on 30 September 2020

Private Limited Company with 4 Directors - 2 in India and 2 of them abroad.

All 4 Directors are also Shareholders.

India Director (1) - 51.99% shares
India Director (2) - 0.02% shares
Abroad Director (1) - 24% shares
Abroad Director (2) - 24% shares

The majority shareholders want to remove the India Director (2) who holds 2 shares out of 10000 shares (0.02%). this director has refused to resign.

Can the other majority shareholders just remove this Director without any involvement?
What are the other ways to remove this Director easily ?

Thank you for immediate response

Replies (3)

Removal of Director is very hectic process, even RoC does not approve the same without any strong reason.. before removing the Director plz confirm the reason.

In this case majority shareholders can remove the Director by giving special notice. follow section 169

kings22

Shareholder

167 Points Posted on 01 October 2020

That is surprising to hear as it is rather listed as a very easy process with an ordinary resolution. Can you share why you think it is difficult and laborious? Not sure if there are others on forum who have seen ROC resisting removals. There are lot of reasons directors are removed - cessation, need ended, company simplification (which is our case) and many others.

Can a director resist removal ? If they do what options do they have to counter or delay?