Removal of director

This query is : Resolved

Neha Somani (Querist)
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24 July 2015 Dear All,

There is a query which goes like this, in a Pvt Co. there are two Directors holding 50% stake each. Director A had stopped cooperating with Director B and is causing hurdles in operating the business. He is neither leaving the Directorship not is he diluting his stake.

Now Director B wants to remove him from Board but he is not able to do so as Director A is not ready to resign. What is the possible remedy here for Director B?? Pls guide.

Gupta Mohit

Gupta Mohit (Expert)
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24 July 2015 Share holders and directors are two different personalities. In your case the shareholder and directors are the same person.

Now as a director, he can not do anything. But as a shareholder. He can approach the Registrar of Companies for this issue and can file applicaion for the liquidation of the company with the actual reason. Or he can move to the civil court.
But as a director capacity he can not compel the other director to resign.

For more clarity, need to go through in details in specific.

Mohit
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