{"id":661,"date":"2025-09-29T00:00:00","date_gmt":"2025-09-29T00:00:00","guid":{"rendered":"https:\/\/rize.blog.razorpay.in\/how-to-remove-a-director-from-a-company-in-india\/"},"modified":"1970-01-01T00:00:00","modified_gmt":"1970-01-01T00:00:00","slug":"how-to-remove-a-director-from-a-company-in-india","status":"publish","type":"post","link":"https:\/\/razorpay.com\/rize\/blogs\/how-to-remove-a-director-from-a-company-in-india\/","title":{"rendered":"How to Remove a Director From a Company in India [2025 Guide]"},"content":{"rendered":"<h2 id=\"\"><strong id=\"\">Reason for Director Removal<\/strong><\/h2>\n<p id=\"\">Under the <strong id=\"\">Companies Act, 2013<\/strong>, a director may be removed for several reasons, such as:<\/p>\n<ul id=\"\">\n<li><strong id=\"\">Disqualification<\/strong> under Section 164 (e.g., insolvency, unsound mind, etc.)<\/li>\n<li><strong id=\"\">Prolonged absence<\/strong> from board meetings for 12 consecutive months<\/li>\n<li><strong id=\"\">Violation of Section 184<\/strong>, which relates to disclosure of interest in contracts or arrangements<\/li>\n<li><strong id=\"\">Court or tribunal orders<\/strong> requiring removal<\/li>\n<li><strong id=\"\">Criminal conviction<\/strong> resulting in imprisonment for more than six months<\/li>\n<li><strong id=\"\">Regulatory non-compliance<\/strong> is impacting the company\u2019s functioning<\/li>\n<li><strong id=\"\">Voluntary resignation<\/strong> by the director themselves<\/li>\n<\/ul>\n<h2 id=\"\"><strong id=\"\">Relevant Provisions of the Companies Act, 2013 to Remove a Director<\/strong><\/h2>\n<p id=\"\">Several provisions govern the process of removing a director:<\/p>\n<ul id=\"\">\n<li><strong id=\"\">Section 169<\/strong>: Grants shareholders the right to remove a director by passing an ordinary resolution.<\/li>\n<li><strong id=\"\">Section 115<\/strong>: Relates to giving special notice for such resolutions.<\/li>\n<li><strong id=\"\">Section 163<\/strong>: Provides rules for proportional representation in the Board of Directors (if applicable).<\/li>\n<li><strong id=\"\">Rule 23 of the Companies (Management and Administration) Rules, 2014<\/strong>: Specifies the procedure for filing and notices.<\/li>\n<\/ul>\n<p><strong><em>Related Read: <\/em><\/strong><a href=\"https:\/\/razorpay.com\/rize\/blogs\/independent-directors\/\"><strong><em>Independent Directors: Appointment, Roles And Duties<\/em><\/strong><\/a><\/p>\n<h2 id=\"\"><strong id=\"\">Compulsory Criteria for Director Removal<\/strong><\/h2>\n<p id=\"\">The removal of a director requires strict adherence to specific legal criteria:<\/p>\n<ul id=\"\">\n<li><strong id=\"\">Special Notice<\/strong>: A special notice of the resolution must be given to the company.<\/li>\n<li><strong id=\"\">Opportunity of Representation<\/strong>: The concerned director must be allowed to present their case before removal.<\/li>\n<li><strong id=\"\">Restriction on Reappointment<\/strong>: The board cannot reappoint the director once removed.<\/li>\n<\/ul>\n<h2 id=\"\"><strong id=\"\">Procedure for Director Removal<\/strong><\/h2>\n<p id=\"\">The removal process depends on the circumstances:<\/p>\n<h3 id=\"\"><strong id=\"\">1. Voluntary Resignation by the Director<\/strong><\/h3>\n<ul id=\"\">\n<li>The director submits a resignation letter.<\/li>\n<li>The company accepts and records it in the minutes of the meeting.<\/li>\n<li><strong id=\"\">Form DIR-11<\/strong> (by the director) and <strong id=\"\">Form DIR-12<\/strong> (by the company) are filed with the <a href=\"https:\/\/razorpay.com\/rize\/blogs\/what-is-roc-filing\/\">ROC<\/a>.<\/li>\n<\/ul>\n<h3 id=\"\"><strong id=\"\">2. Absence from Board Meetings for 12 Months<\/strong><\/h3>\n<ul id=\"\">\n<li>As per Section 167(1)(b), the office becomes vacant if a director fails to attend any board meetings for 12 months.<\/li>\n<li>The company files <strong id=\"\">Form DIR-12<\/strong> to update the ROC.<\/li>\n<\/ul>\n<h3 id=\"\"><strong id=\"\">3. Removal Initiated by Shareholders<\/strong><\/h3>\n<ul id=\"\">\n<li><strong id=\"\">Board Meeting<\/strong>: The Board convenes a meeting to approve the notice of removal.<\/li>\n<li><strong id=\"\">Extraordinary General Meeting (EGM)<\/strong>: Shareholders pass an <strong id=\"\">ordinary resolution<\/strong> for removal.<\/li>\n<li><strong id=\"\">Right to Representation<\/strong>: The director is allowed to defend their case before voting.<\/li>\n<li><strong id=\"\">Filing with ROC<\/strong>: The company files <strong id=\"\">Form DIR-12<\/strong> within 30 days of the resolution.<\/li>\n<\/ul>\n<p id=\"\">Once the ROC updates the records, the director\u2019s name is officially removed from the <a href=\"https:\/\/services.india.gov.in\/service\/ministry_services?cmd_id=670&#038;ln=en\" target=\"_blank\" rel=\"noopener\">MCA<\/a> database.<\/p>\n<h2 id=\"\"><strong id=\"\">Form DIR-12 to Remove a Director<\/strong><\/h2>\n<p id=\"\"><strong id=\"\">Form DIR-12<\/strong> is a mandatory filing under the Companies Act, 2013. It must be filed with the ROC to record the appointment or cessation (resignation\/removal) of a director. The form must include:<\/p>\n<ul id=\"\">\n<li>Details of the director being removed\/resigned<\/li>\n<li>Relevant board\/EGM resolutions<\/li>\n<li>Digital signature of an <a href=\"https:\/\/razorpay.com\/rize\/blogs\/director-in-private-limited-company\/\">authorised director<\/a> or company secretary<\/li>\n<\/ul>\n<h2 id=\"\"><strong id=\"\">Consequences of Failing to File Form DIR-12 to Remove a Director<\/strong><\/h2>\n<p id=\"\">If Form DIR-12 is not filed within <strong id=\"\">30 days<\/strong> of a director\u2019s removal or resignation, the company can face financial penalties:<\/p>\n<ul id=\"\">\n<li><strong id=\"\">Up to 30 days delay<\/strong>: Penalty of <strong id=\"\">twice the standard filing fees<\/strong><\/li>\n<li><strong id=\"\">30\u201360 days delay<\/strong>: Penalty of <strong id=\"\">four times the regular fees<\/strong><\/li>\n<li><strong id=\"\">60\u201390 days delay<\/strong>: Penalty of <strong id=\"\">six times the regular fees<\/strong><\/li>\n<li><strong id=\"\">Beyond 180 days<\/strong>: Penalty of <strong id=\"\">twelve times the standard fees,<\/strong> along with <strong id=\"\">possible compounding of offences<\/strong><\/li>\n<\/ul>\n<h2 id=\"\"><strong id=\"\">Implications of Director Removal<\/strong><\/h2>\n<p id=\"\">Once a director is removed:<\/p>\n<ul id=\"\">\n<li>Their <strong id=\"\">duties and responsibilities terminate immediately<\/strong>.<\/li>\n<li>They lose the <strong id=\"\">authority to represent the company<\/strong> in any legal, financial, or operational matters.<\/li>\n<li>If procedures are not correctly followed, it may lead to <strong id=\"\">legal disputes or tribunal intervention<\/strong>.<\/li>\n<li>Mishandling director removal can create <strong id=\"\">reputational risks<\/strong> for the company, affecting investors and stakeholders.<\/li>\n<\/ul>\n<h2 id=\"\"><strong id=\"\">Frequently Asked Questions (FAQs)<\/strong><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Understand the legal process to remove a director from a company in India, including procedures under the Companies Act, forms, and shareholder approval.<\/p>\n","protected":false},"author":1,"featured_media":662,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-661","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/661","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/comments?post=661"}],"version-history":[{"count":1,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/661\/revisions"}],"predecessor-version":[{"id":883,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/661\/revisions\/883"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/media\/662"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/media?parent=661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/categories?post=661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/tags?post=661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}