A company by ordinary
resolution can remove a director other than a director appointed by the
Tribunal under section 242 before the expiry of the period for which he has
been appointed by giving him a reasonable opportunity of being heard.
Provided no provision
shall apply where the company has availed benefit given under section 163 to
appoint not less than 2/3rd of the total number of directors in
according with the principle of proportional representation.
A special notice must
be required of any resolution to remove a director under this section or to
appoint other as a director in place of a director so removed at the meeting in
which he will be removed.
On receipt of notice
of such resolution to remove the director under this section then the company
should forthwith send a copy thereof to the director.
In these day removal
and appointment of a director is most common problem because of dispute between
the director and their short term goal. Due Diligence Financial Services
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