Recognized by Govt. of India
Simplified Director Removal or Resignation Process (Companies Act, 2013)
Get expert help online to remove or have a director resign from your company, following the Companies Act, 2013. Our experienced team ensures a smooth and affordable process.
In India, private limited companies require at least 2 directors, and public limited companies require at least 3. However, under Section 169 of the Companies Act, 2013, a company can remove or accept the resignation of a director for various reasons. Our experienced team can assist shareholders in navigating this process according to Ministry of Corporate Affairs (MCA) regulations.
The Companies Act allows a company to remove a director (except those appointed by the central government) for various reasons, including:
- Unavailability at board meetings for over 12 consecutive months
- Voluntary resignation by the director
- Conviction and imprisonment by a court
- Ineffectiveness in the role
- Need for new expertise on the board
- Mental illness or bankruptcy of the director
- Unresponsiveness to company notices
Shareholders can initiate the removal process for directors not appointed by the central government if they meet one of the following criteria:
- Hold at least ₹500,000 in company capital
- Hold at least 1% voting power in board meetings
The Companies Act mandates filing the DIR-12 form with the Ministry of Corporate Affairs within 30 days of a director's resignation. This form details the departing director's information. Failure to file this form can lead to penalties:
- Fixed government fee for not filing within 15 days
- Double the government fee for not filing within 30 days
- Quadruple the government fee for not filing within 31-60 days
- Ten times the government fee and potential court action for not filing within 180 days (government fee: ₹300)
Documents Required for Director Removal
This form is required when a director resigns. You'll need to attach the following documents:
- Director's Resignation Letter
- Director's Digital Signature Certificate (DSC)
This form is required when removing a director (other than resignation). You'll need to attach the following documents:
- Director's Resignation Letter (if applicable)
- Board Resolution for Director Removal
Choose Your Package
Basic
- Professional Fee: INR 2999
- Resignation of a Director from the Board of Directors of a Company with resigning Directors' consen
Standard
- Professional Fee: INR 3999
- Resignation of 2 Directors from the Board of Directors of a Company with resigning Directors' consent.
Premium
- Professional Fee: INR 4999
- Resignation of 3 Directors or more from the Board of Directors of a Company with resigning Directors' consent.
How We Work
01
Complete the form and make the payment.
02
Receive a call from our specialized CA panel.
03
Upload the required details and documents.
04
Our expert will prepare and seek your approval for the director removal process.
05
The filing and processing of the director removal will be completed!
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Frequently Asked Questions (FAQs)
The shareholders and the Board can arrange for a meeting by giving a 7-day notice to all the existing directors. In the meeting, the decision for removal of the Director can be taken unanimously by sending a notice to the concerned Director.
TUsually, an organization can proceed with an unanimously accepted Notice from the Board Meeting to complete the removal process within 14 days.