In a private company, a minimum of two directors is required, while a public corporation must have at least three directors. Removal of a director can occur under various circumstances, including incompetence, prolonged absence from board adherence, violation of agreements, or a criminal conviction. Shareholders owning shares exceeding Rs 5,00,000 or holding more than 1% of total voting power can initiate the removal process.
Shareholders with significant holdings can initiate the removal process through a special proclamation .The board and shareholders, after due consideration, can proceed with the removal. The director in question has the right to be heard before the board and shareholders.
A special proclamation can be initiated by shareholders owning shares exceeding Rs 5,00,000 or holding more than 1% of total voting power.
No, a proper procedure involving board and shareholder resolutions, notice, and due consideration must be followed.
Yes, a director can be removed for non-performance or incompetence, subject to legal provisions and due process.
