Remove Director

In a company, a director can be removed based on few grounds mentioned in the company’s Act. As per section 169 of Company’s Act, Shareholder has the authority to remove directors with a Process. Director can remove by passing an ordinary resolution in a general meeting, except the directors which are appointed by the central government the process to remove director or the tribunal. If the director serves resignation himself, then he/she must pass a resolution in the company. The board meeting discusses over the issue and decides whether to accept the resignation or not. Board member must discuss over it properly and hold a hearing or meeting with director regarding the same. If the board decide to remove the director, then DIR-12 must be filled with the registrar of the companies. It takes 10 to 15 days to remove the director from the company. The grounds on which the director can be removed are any of the exclusions stated under the Act, Absenteeism from the board meetings for more than 12 months, acts against section 184 of company’s Act, or he/she is barred by an order of a court or Tribunal, or is imprisoned by a court of any offense and condemned to imprisonment for not less than six months.


  • In order to save the business from fraud or corruption, removing directors through ordinary resolution is most beneficial for the shareholders.
  • Removal of director for the benefit of the company so that it can prevent any risk such as brand image or growth.
  • If the director does not able to meet the requirements or eligibility criteria of a company.
  • As per the prescribed responsibilities of director, If the appointed director does not perform the duties given to them. Director is liable for disqualification from MOA.