Remove a Director from Your Company with Ease!
Removing a director can be complicated, but not with Efinac. Get the process started at just ₹499/- and pay the rest conveniently after processing begins.
Documents Required from Directors, Shareholders
- Pan Card Copy (Mandatory)
- ID Proof (Any one) – Driving License/ Voter ID/ Passport Copy/ Aadhaar Card
- Address Proof – Latest Bank Statement/ Latest Telephone or Mobile Bill/ Latest Electricity Bill.(MUST be less than 30 days old)
- Passport Size Photograph
Documents Required for Registered Office Address
- NOC – No Objection Certificate from the Owner of the Property
- Address Proof – Latest Telephone Bill or Mobile Bill/ Gas Bill/ Electricity Bill (MUST be less than 30 days old)
Removing A Director With Efinac
With Efinac you can remove a director from your company in 3 simple steps –
Step 1
Step 2
Step 3
Removing a Director - Overview:
It is possible to add or remove a director from the company at any time. There are different reasons why a director is removed and there are three different procedures based on the reason. Irrespective of that, Efinac can help you with removing a director from your company and make the whole process easy for you.
Reasons to Remove a Director
A director can be removed for any of the following reasons:
- If they incur any of the disqualifications specified under the Companies Act
- If they absent themselves from board meetings over 12 months
- If they enter into contracts or arrangements against the provisions of Section 184 of the Companies Act
- If they are disqualified by an order of a court or tribunal
- If they are convicted by a court of any offence and sentenced to imprisonment for not less than six months
- If they have not abided by the terms and protocols mentioned in the Companies Act of 2013
- If they have resigned voluntarily from their position.
Ways to Remove a Director
There are 3 ways to remove a director from a company:
1. When the Directors Tender Their Resignation
The steps to be followed in this scenario are:
- Step 1: Holding a board meeting by giving seven days of clear notice
- Step 2: In the meeting, the board members will take note of the resignation
- Step 3: Then they have to pass a resolution in a particular format to that effect
- Step 4: After that, Form DIR-11 needs to be filed by the resigning director in his individual capacity
- Step 5: The company has to file Form DIR-12 with the registrar of companies (RoC) along with the registration letter and the board resolution
- Step 6: When all the forms are filled and the formalities for the removal of the director are done, the name of the director will be removed from the master data of the company on the Ministry of Corporate Affairs (MCA) website.
2. Director Remains Absent from the Board Meetings for 12 Months
- Step 1: If a director absents himself from all the meetings of the board of directors held over a period of twelve months, with or without seeking leave of absence from the board, they are considered to have vacated their office as per Section 167
- Step 2: A Form (DIR-12) must be filed
- Step 3: Upon completion of the formalities, the concerned director’s name will be removed from the database of the Ministry of Corporate Affairs (MCA).
3. Removal of Director by Shareholders
- Step 1: A notice is sent to all the shareholders for a board meeting required to be conducted within seven days from the date of the issue
- Step 2: A resolution is passed to have a general meeting and then for the removal of the director, subject to the approval of the shareholders on the day of the meeting
- Step 3: After providing a 21-day notice, the second meeting of shareholders is held to vote on the resolution passed earlier and the director who is being removed by the shareholders will be allowed to speak on their removal
- Step 4: The shareholders must file Form DIR-12, along with the attachments of the board resolution, and an ordinary resolution
- Step 5: Once all the formalities are over, the name of the concerned director is removed from the database of the Ministry of Corporate Affairs (MCA) and its website.
This is the simplified version of the whole process. The removal procedure has to be carried out carefully and should follow the procedure laid down in the Companies Act.
Our team at Efinac will walk you through the entire process and will be there to help you at every step.
Consequences of Not Filing Form DIR-12:
DIR-12 has to be filed within 30 days from the date of resignation. If the company fails to do so, the following penalties will apply:
- After 30 days - within 60 days: twice the government fees
- After 60 days - within 90 days: 4 times the government fees
- If it exceeds 90 days: 10 times the government fees
- If it exceeds 180 days: 12 times the government fees and will be booked for the compounding offence as well
Why Efinac
Here is why you should choose Efinac for removing a director from your company:
- Simple and speedy process
- Experts will guide you through the whole process
- A resolution drafted and forms filled & filed for you
- You get the best support
- All your queries will be answered.
The Glossary
AoA
Articles of Association
DIN
Director Identification Number
DSC
Digital Signature Certificate
ROC
Registrar of Companies
MCA
Ministry of Corporate Affairs
FAQ
Yes, there is and it is as follows:
- The proposed individual must be a major.
- They must qualify as per the laws mentioned under the Companies Act, 2013.
- The members of the board must consent to the appointment of the proposed individual.
No, a DIN or director identification number is permanently allotted and can be used for a lifetime. Once it is allotted, the same number may be used for multiple appointments and resignations.
No, as per the Companies Act, 2013, only individuals can serve as directors of public and private limited companies.
Yes, an NRI or foreign national may be added as a director in a private limited company as long as there is at least one director on the board who is an Indian resident. To do so, they must have a valid passport and a DIN.
The minimum number of directors required is based on the type of company. For a one-person company it is 1, for a private company it is 2 and a public company needs to have at least 3 directors.
A person cannot be appointed as a director if he doesn’t qualify under the AoA, if they are an undischarged bankrupt, or if they are restricted by a court order.
A private company can have a maximum of 15 directors.
Yes, the process is 100% online. We will provide you with a dashboard in which you can comfortably do everything.
Yes, a person with a criminal record can be a director of a company as long as they are not restricted specifically by a court order.
To review means to look back over something for evaluation or memory.
