Who is the director of company?

Director of the company is an elected member by the shareholders to manage the company affairs laid down in the Memorandum of Association (MOA) and Article of Association (AOA). Board of directors and shareholders can remove the directors appointed for a number of reasons.

What are the types of director in a company?

There is a number of directors listed in the company that have different managerial activities assigned to them.

• Managing Director
• Executive Director
• Additional Director
• Ordinary director

What are the different Modes of removing a director?

Different modes of removing the director of the company are:

• Resignation of director from the board of directors of a company with resigning directors’ consent.
• Removal of director from the board of directors of a company without resigning directors’ consent.
• Removal of a director from the board of directors of a company without resigning director consent by serving notice.

Who can remove the director in a company?

Power to remove the director from the company is with:

• Removal of director by Shareholder
• Removal of director by the board
• Removal of director by disqualification

What is the directors’ liability after removal from the company?

Directors after removal from the company are not liable for its future liabilities but any acts completed in his tenure will be held against the director of the company.

What is the procedure of removing the director in a company?

The removal of a director from a company is completed after the passing of board resolution which is conducted in the presence of company shareholders. After the passing of the board resolution, the director and the company have to file relevant forms (DIR-11 and DIR-12) with MCA.

Can a director be disqualified?

Yes, a director can be disqualified from the company if the director fails to meet the legal requirements of the rules and regulation listed down in the Companies Act 2013.

Disqualified directors are prohibited from holding the position of director in any other company.

Can I resign if I am the sole director of the company

Yes, you can resign even if you are the sole proprietor in the company. The only requirement is that you will have to appoint someone else as director, to run a company on your behalf.

Alternatively, you can also sell your business and dissolve the company and its assets.

What is the minimum number of directors required for a company?

Minimum director requirement for the companies is as follows:

• Every private company has a minimum of 2 directors
• Every Public Company has at least 3 directors at any point of the company is active

Impact of removal of director Form Company when they are an active director in another company?

If the director has been removed from the company with his consent then in that scenario the he can remain director in the other companies where he hold similar position but, if he has been disqualified on the grounds that he is either insolvent or of unsound mind, then in that scenario he cannot hold an office similar with similar position in another office.

What are the forms required for removal director?

You are required to submit the following forms with MCA:

• Application for disqualification of director DIR-10
• Application by Director for Resignation DIR-11
• Application by a company declaring its key managerial personnel. DIR-12