A private corporation must have at least one director, while a public corporation must have at least three. A private firm can fire a director if he or she commits any of the Act's incompetence and fails to attend board meetings for more than a year. It makes agreements or arrangements in violation of section 184's provisions.
PARTICIPATION IN THE REMOVAL OF A DIECTOR WITHIN COMPANY
Stockholders who own not less than Rs 5,00,000 in paid-up capital shares or hold not less than 1% of the total voting power can send a special notice to the corporation requesting the ‘removal of the director.'
Shareholders give up the right to choose the meeting's date. The specific notice, nevertheless, must be issued no later than three months before the meeting, despite the fact that the resolution must be moved at least 14 clear days before the session.
The contemplated director has indicated that he or she want to be addressed at the board of directors meeting. If indeed the objectives are verified by the stockholders and the board of directors, the procedure for removing a director can be eliminated following deliberation.
DOCUMENTS REQUIRED FOR REMOVING OF DIRECTOS
- Photograph: Passport size photo of the Director to be designated
- PAN Card: Self-attested PAN card of the Director to be designated
- Proof of Residency: Aadhar Card/ Voter ID/ Passport/ Driving License
- Digital Signature Certificate: DSC of the ongoing Director and Director to be eliminated/removed
- Identity proof before-mentioned as Passport/Election card/Driving License/Aadhar card
- Mobile number and Personal & official email id of the Director
- It is mandatory to apostle all the documents apostilled if the Director is a non-resident of India.
- Notice of resignation filed with the company
- Proof of dispatch
- Acknowledgment of form, if received.
ELIGIBILITY FOR REMOVING OF A DIRECTOR
- Age Demarcation-Although there is no set age for being a director, it is necessary for the individual to be competent to engage into any contract. Furthermore, if a person is 21 years old and has not legally attained the age of 70 years, he becomes qualified to be a director of a recognised firm as a’ managing director,' 'full-time' director, or 'independent' director.
- Determination of Nationality-There are no limitations. The corporation must, nevertheless, have at least one Indian director.
- DIN Needed-An individual should obtain a Director Identification Number in order to be named as a company's director. The major objective of getting a DIN is to ensure that no phoney directors commit fraud, and that if anybody does engage in illegal behaviour, individuals can indeed be tracked down using this unique number.
- Limit within Valid Directorship-At any given moment, a person can only be a director of 20 different companies. Just ten of the twenty companies can be publicly traded.
NON_ELIGIBILITY FOR REMOVAL OF DIRECTOR FROM THE COMPANY
- Unsound Mind or Bankrupt Person-A director cannot be appointed if he or she is mentally ill or incapable of making independent choices. This includes children, mentally ill people, and people with shaky mental faculties. Furthermore, insolvent people or those who have filed bankruptcy claims in a court of law are barred from serving as acting directors.
- Criminal Background-When an individual has a criminal record and also was condemned to more than seven years in prison, he is ineligible to be a director.
- Pending Overdue returns-If the person has failed to meet previous returns in any of the previous years, he will be removed from the directorship.