17 February 2011
can a addition director be removed before the ensuing AGM,where letter of resignation has been received from the concerned director containing his inability to continue his Directorship. Note:(Public Limited Co. Closely held)
17 February 2011
As per Sec 260 of the Companies Act, 1956,if the Articles provides, Additinal Director can be appointed by the Board of Directors and they shall vacate the office at the ensuing AGM. Here the maximum time period is given for holding the office of the Additinal Director. In my opinion, if he has given resignation for his inability to continue his directorship, it should be acceptable by the Board.
17 February 2011
Additional Director's resignation may be accepted.
However Mr. Raaj - Whether it's a resignation or removal? as your query refers to both. The procedure for removal will be different as enumerated in Section 284 of the Companies Act, 1956.
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