Section 169 of CA 2013 : Section 169: Removal Of Directors
CA 2013
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Explanation using Example
Imagine a scenario where the shareholders of XYZ Private Limited are dissatisfied with the performance of one of their directors, Mr. John Doe, who they believe is not acting in the best interests of the company. They decide to remove him from his position before the end of his term. The company follows Section 169 of the Companies Act, 2013, and issues an ordinary resolution to remove Mr. Doe. However, since Mr. Doe is an independent director who has been re-appointed for a second term, the resolution to remove him must be a special resolution.
The company gives Mr. Doe a reasonable opportunity to be heard, as required by law. They also issue a special notice to all shareholders informing them of the upcoming resolution to remove Mr. Doe and to appoint a new director in his place. The notice includes...
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