A director can only be removed if he meets any of the disqualification criteria mentioned in the Companies Act, 2013. The shareholders can remove a director before the end of his tenure, except for appointment by the Central Government. Post the removal; the company should file DIR-12 with the Registrar of Companies.
A company can remove a director if he incurs any of the disqualifications specified under the Act, absents himself/herself from board meetings over 12 months, enters into contracts or arrangements against the provisions of section 184, disqualified by an order of a court or Tribunal, or is convicted by a court of any offense and sentenced to imprisonment for not less than six months.
Let us look at the procedure for removal of a director in three different circumstances:
Within 30 days from the date of resignation, if the company fails to or doesn’t file the form DIR-12, then the following penalty will be applicable. e-Form DIR-12 is also available for submission.
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