After following Section 283 of Companies Act 1956, majority of the share holders removed managing director of a Pvt. Ltd. Company. Surprisingly, managing director got an mandatory injunction from District Court that he cannot be removed from the post as he is having agreement for the post of managing director with Directors under Arbitration Act 1995. Also the District Court is delaying the process for more than two months as a result managing director is misusing his power and money and company will become sick. Please suggest me with case reference so that we can dispose of the case early.
Thanking you.
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Removing Managing Director
Replies (2)
Kindly refer the case mentioned below:
Khetan Industries Private Limited Vs. Manju Ravindra Prasad Khetan
In this case it was held by the court that the shareholders have a right to remove the directors under section 284 by passing ordinary resolution and section 284 provides an inbuilt mechanism for the enforcement of the right and civil court has no jurisdiction to entertain the suit for removal of director.
If you have correctly followed the procedure given u/s 284, then you may refer the case mentioned above.
Best Regards
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