A director can be added or removed from the company at any moment. A director can be removed for several reasons, and different methods depend on the cause. Regardless, TaxDraw can assist you in replacing a director from your company and make the procedure simple for you.
• If they are found guilty of any of the disqualifications listed in the Companies Act.
• If they miss more than a year's worth of board meetings.
• If they violate Section 184 of the Companies Act by entering into contracts or agreements.
• If a law rules that they are ineligible,
• If they are declared guilty of any crime and sentenced to at least six months in prison by a court,
• If they have not followed the rules and processes outlined in the Companies Act of 2013, they will be fined.
• If they have freely resigned from their position.
A director can be removed from a company in one of three ways:
When the Director Offer their Resignation
The steps to take in this case are as follows:
Call a board meeting with at least seven days' notice.
The board members must take notes of the resignation during the meeting.
They must then pass a resolution to that effect in a specific format.
Finally, the resigning director must file Form DIR-11 in his capacity.
The company must submit Form DIR-12, along with the resignation letter and the board resolution, to the registrar of companies (ROC).
Once all of the documents have been completed and the processes for removing the director have been completed, the director's name will be deleted from the company's master data on the Ministry of Corporate Affairs (MCA) website.
For a period of 12 months, a director is not present at board meetings.
A director is regarded to have abandoned their position if they fail to attend all board of director’s meetings for a period of twelve months, with or without asking leave of absence from the board.
Fill and submit a DIR-12 form.
After the processes are completed, the name of the concerned director will be deleted from the Ministry of Corporate Affairs database (MCA).
Shareholders decided to remove a director
All shareholders are notified of an upcoming board meeting held within seven days of the issue date.
A resolution is passed calling for a general meeting and then the removal of the director, subject to shareholder approval on the meeting day.
Following a 21-day notice, the second meeting of shareholders is held to vote on the resolution passed previously, and the director whom the shareholders are removing is allowed to speak about their dismissal.
The shareholders must file Form DIR-12, the board resolution's attachments, and an ordinary solution.
• After 30 days and within 60 days, the government fees are doubled.
• After 60 days, you must pay four times the government costs within 90 days.
• If it lasts longer than 90 days, you'll have to pay ten times the government fees.
• If it exceeds 180 days, you will be charged 12 times the government fees and arrested for the compounding offense.
• The process is quick and straight forward.
• Experts will assist you during the entire procedure.
• You get the most exemplary support by having a resolution developed and documents filled out and filed for you.
• All of your concerns will be addressed.
• Passport size photo of the Director
• Copy of PAN Card of the Director
• Digital Signature Certificate(DSC) of Director
• Director Mail Id and Mobile Number
• Copy of Aadhar Card/ Voter ID/ Passport/ Driving License
• Copy of resignation letter
There are 3 ways to get rid of a director:
By the director resigning from their position
If a director misses 12 consecutive board meetings, they will be removed from the board.
If the shareholders believe it is necessary.
If a person does not qualify for the AOA, is an undischarged bankrupt, or is subject to a court order, they cannot be nominated as a director.
Yes, a person with a criminal past can be a corporate director if a court order does not explicitly bar them.
Yes, the process is entirely online, and we will handle all of the necessary physical acts. We will supply you with a dashboard where you can accomplish everything with ease.