Removal of Directors

The company in general meeting

A company can remove a director from the board before his term of office expires. They can pass a resolution in a general meeting upon special notice. However, there are certain exceptions:

• This does not apply to a director appointed by the Central Government.
• This does not apply to companies who have adopted two-thirds of its directors by the principle of proportional representation.
• Directors appointed by financial institutions under an agreement like IDBI, IFCI under their respective acts.
• Directors that have been appointed by the Board for Industrial and Financial Reconstruction.

Removal by the Government

A director can be removed from office under advice from Central Government. The Central Government chooses to use this power on the recommendation of the Company Law Board/National Company Law Tribunal.