Resignation of Director / Remove a Director

In every registered company there may exists some circumstances when the Board of Directors or shareholders of the company propose to remove an existing director of company. There may also exists a situation when a director on his / her own plan to relieve their rights and responsibilities and leave a company. Will it impact company’s business operations ?? Does company again need to form new Board of Directors ?? Relax !!! Resigning as Director or removal of director is not that much difficult legal process.

If a director wishes to resign on his /her own, then according to section 169 of the Companies Act, 2013, he must precede the necessary filing and inform the same to MCA within 30 days once resigned.

If any director has not attended a single board meeting within a period of 12 months, then according to section 167 of the Companies Act, 2013, a notice of removal can be issued by board of directors. All shareholders also have a legal right to remove a director by passing a special resolution in general meeting. Any company must confirm the minimum no. of directors required on board as per the Companies act 2013 before removing any director.

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