Removal of Director

Removal of Director

The removal of a director is a significant process that entails careful adherence to legal procedures and corporate governance standards. Under the Companies Act, a director can be removed before the expiration of their term through a resolution passed by the shareholders at a general meeting. This process usually begins with a notice of intention to remove the director, which must be provided to all shareholders and the director in question. The director has the right to be heard at the meeting where the resolution for their removal is considered. Additionally, the company must file the necessary forms, such as Form DIR-12, with the Registrar of Companies (RoC) to officially record the removal. Proper documentation and adherence to legal requirements are crucial to ensure the process is transparent, fair, and compliant with statutory regulations. The removal of a director may be prompted by various reasons, including misconduct, failure to perform duties, or loss of confidence by shareholders. It is essential for the company to handle the removal process with sensitivity and legal precision to avoid potential disputes or legal challenges, thereby maintaining corporate integrity and stakeholder trust.