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Remove a company director safely and legally within just 10 days
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Removing a Director – An Overview
A company can add or remove a director at any time. The removal may happen for various reasons, and the procedure differs depending on the situation—generally categorized into three types. Regardless of the reason, Easebis ensures a smooth and hassle-free process to help you remove a director from your company.
A director may be removed from a company for several reasons, such as:
Incurring disqualifications under the Companies Act
Being absent from board meetings for more than 12 months
Entering into contracts or arrangements that violate Section 184 of the Companies Act
Being disqualified by an order of a court or tribunal
Being convicted of an offence and sentenced to imprisonment of six months or more
Failing to comply with the provisions of the Companies Act, 2013
Resigning voluntarily from their position
To qualify as a company director in India, an individual must fulfill the following conditions:
Must be at least 18 years of age
Must hold a valid Director Identification Number (DIN) issued by the MCA (can be applied for online if not available)
Must not be disqualified under the Companies Act, 2013 (i.e., not declared bankrupt, convicted of an offence, or disqualified by a court/tribunal)
Must provide consent to act as a director by filing Form DIR-2 with the MCA
Must be formally appointed through an appointment letter, with details filed in Form DIR-12 with the MCA
Resignation:
A director also has the right to resign voluntarily by submitting a resignation letter to the company and filing it with the MCA.
The following documents are typically needed for removing a director from a company:
Notice of Board Meeting:Â A notice must be sent to all directors to convene a board meeting where a resolution for removal is passed by majority vote.
Special Notice to the Director:Â A formal notice must be given to the concerned director, stating the reasons for removal and including a copy of the board resolution.
Resignation Letter (if applicable):Â If the director chooses to resign voluntarily, their resignation letter should be collected and filed with the MCA.
Form DIR-12: This form must be filed with the MCA within 30 days of the director’s removal to officially update company records.
Board Resolution:Â A certified copy of the resolution approving the removal should be prepared and submitted to the MCA.
Declaration by the Director:Â A written declaration from the outgoing director confirming they have no objection to the removal.
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