Who is Director under Companies Act, 2013?
According to Section 2(34) of the Companies Act, 2013, “Director means a Director appointed to the Board of a company.” In other words, any person occupying the position of a director, by whatever name called.
This definition is fairly inclusive and includes all people who work as directors for a firm, regardless of the exact title they may have, such as independent, non-executive, managing, or executive director. Furthermore, the definition is all-inclusive and includes directors of businesses incorporated under the act or any prior company law, as well as directors of all kinds of enterprises, whether private or public.
Geeky Takeaways:
- The process of removing a director from their position for misconduct or incompetence that affects corporate governance is known as Removal of Director.
- Conflicts of interest, incompetence, and misconduct are frequently cited as grounds for director removal.
- Directors may be removed by the shareholders by special resolution, automatically removed for an extended period, or by voluntary resignation.
- Failure to file Form DIR-12 for Director resignation or removal may result in legal non-compliance, fines, and loss of good standing.
- A Director may be removed by submitting a resignation letter, a board resolution, a shareholder resolution, Form DIR-12, updated statutory registers, and any other pertinent evidence.
Table of Content
- Removal of Director under Companies Act, 2013
- Reasons behind Removal of Director
- Ways to Remove a Director of a Company
- Consequences of Not Filing Form DIR-12
- Documents Required for a Director Removal in a Company
- Conclusion
- Frequently Asked Questions (FAQs)
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