Company Lawboard
3 years ago
A, B, C and D started a company and all are family members. A is the managing director and rest are permanent directors. After some years C and D are resigned from the company as directors but they are shareholders. Now A and B are the permanent directors which A is Managing director and B is director. Can director A removes director B without any reason ? If Director A does remove director B, does B not have right on the private limited assets ? In my case, Director A removed Director B and got another director. They sold the limited company to third party. How legal is this ? How to fight againt this to get quick resolution ? Can we file suit in Company law board and whar are the chances case getting failure ?
The chances of success will depend on the facts of the case, we will need more details to better assist you. The process for addition and removal of members will be laid down in the company's MoA and AoA. You can raise your grievances if this process is not followed.
You can approach the National Company Law Tribunal if the sale has affected the shareholders.
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Ayantika Mondal @ Prime Legal
Responded 3 years ago
Th process of addition and removal of members will be laid down in the company's Memorandum and Articles of Association.
If the dispute is affecting the company's business and inconveniencing other shareholders, you can approach the National Company Law Tribunal.
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