In order to form a company, it is mandatory to have a minimum number of directors as prescribed under the companies Act. No company can be formed without directors. In case of private limited company, it is necessary to have at least two directors and to start a public limited company, it is necessary to have at least three directors.
Any director can be removed under the following circumstances:
- If the director does not attend a board meeting for 12 month
- If the director gives resignation himself
- Removal of a director by passing an ordinary resolution
If the director does not attend a board meeting for 12 month
If the director does not attend any meeting for 12 months even after being informed about the meeting so form DIR-12 is filed in his name under the companies Act.
If the director gives resignation himself
A board meeting is held after the resignation letter to the company and in this meeting it is decided to whether to accept the resignation letter of the director. If resignation is accepted then form DIR-11 should be submitted by the resigning director.
Removal of a director by passing an ordinary resolution
If the director is not appointed by the central government or by the tribunal, then the company has the right to remove the director by passing an ordinary resolution. A special notice is given to the director to remove him and a board meeting is organized by giving notice to all the directors. Voting is conducted in the meeting and if the resolution is passed in favor of majority decision so the form DIR-11 and DIR-12 are submitted to MCA and director is removed from his post.
Form DIR -11 is an e-form which filed by the director for resignation. A copy of the reasons given by the directors is to be attached with this form. To resign, the director has to give a notice in written to the company and have to submit form 11 to within 30 days of resignation.
Form DIR-12 is an e-form that is filed by the company on the MCA portal. This form is submitted for the appointment or removal of directors or for making any change in their designations.
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