Termination of Whole Time Director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2010 Whether the office of director expires with the expiration of the term of office of whole time director? Can a director be removed from the office of directorship with the expiration of his tenure of Whole Time Directorship? Please suggest.

Ankur Garg

Ankur Garg (Expert)
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01 December 2010 Yes...

By following the provisions of section 284 you can remove a director.

Under 284 you have to pass an ordinary resolution of shareholders to remove a director.

File form 32 after removal within 30 days of passing resolution.

Revert if there is any doubt.

Regards

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Ajay Mishra

Ajay Mishra (Expert)
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01 December 2010 Agreed with Mr. Ankur......

Yes, a director be removed from the office of directorship with the expiration of his tenure of Whole Time Directorship in accordance with the provisions of section 284.

Regards

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Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2010 Thank You very much. Now if Mr A, a WTD of a company, whose term of office of Whole Time Director expires on January 15, 2011, and the Board does not want to reappoint him as Whole Time Director, not even ordinary director. As a matter of law, Will he continue as an ordinary director after the expiration of his term as Whole Time Director on 15.01.2011? Or, is he liable to vacate the office of Director also? Point to be noted, the company is not willing to take recourse of Sec 284. Please further clarify.
Regards,

Ankur Garg

Ankur Garg (Expert)
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01 December 2010 Yes

As per my understanding yes he will continue as an ordinary director after the expiration of his term as Whole Time Director on 15.01.2011.

Rest is dependent on the resolution appoint him as WTD.

I think 284 is the only option.

Regards