According to the provisions in the Companies Act of 2013, the authority to remove a director from a company is vested in the board of directors. However, this action mandates a legitimate and compelling rationale. Grounds for dismissal can include the director's lack of effectiveness, involvement in fraudulent activities, conflicts among directors, or voluntary resignation due to personal factors.
For the removal of a director, the board of directors must endorse an Ordinary Resolution, citing the causes for dismissal and verifying that the director wasn't appointed by the central government. Once this sanctioned resolution is in place, the director's removal from the company is enacted.
If the designated director challenges the decision of removal in a legal way and take the matter to the court. This will involve a lot of legalities and create a lot of hassle for the existing directors.
However, Sujata Associates is a professional legal service provider dealing with business legalities for over 20 years. With a vast knowledge of business law, we can easily deal with any possible scenario in a legal way. Even during the Covid-19 pandemic, we are providing easy and simple service processes for our clients via our online portal. Company Director Removal in Kolkata is not an issue anymore. Get in touch with us today.