FAQ: Frequently Asked Questions about Removal of Director in India
Q: What is the process for removing a director in India?
A: The process for removing a director in India is governed by the Companies Act, 2013. The removal can be done by the shareholders of the company through an ordinary resolution passed at a general meeting. The director can also be removed by the National Company Law Tribunal (NCLT) if certain specified grounds are met.
Q: What are the grounds for removing a director through NCLT?
A: The grounds for removing a director through NCLT include acts of misconduct, negligence, or breaching of fiduciary duties. The NCLT can only remove a director if a petition is filed and it is satisfied that the removal is in the best interest of the company.
Q: Can a director be removed without notice?
A: No, a director cannot be removed without notice. The Companies Act, 2013 requires that a special notice be served to the company at least 14 days before the general meeting where the resolution for removal is to be considered.
Q: Can a director challenge their removal?
A: Yes, a director has the right to challenge their removal if they believe it was done unfairly or unlawfully. They can approach the NCLT and provide evidence to support their case.
Q: What are the consequences of director’s removal?
A: Once a director is removed, they lose their position and all associated privileges and powers. They are no longer able to act as a director for that particular company.
Q: Can a director be reappointed after their removal?
A: Yes, a director can be reappointed after their removal if the shareholders or the NCLT deem it appropriate. The reappointment process would follow the same rules and procedures as the initial appointment.