Action against partner who is also director of our company possible?
Can we take legal action against our partner who is also the director of our company? We are 3 directors of a one year old company. Due to some misunderstanding, 1 director of the company is blaming us saying we are incapable of running the company and he should be the only one in charge for running the whole show.
What can we do now?
It seems like a closely held company and working as partnership. You will be governed by company law.
There is a procedure under the Companies Act, Procedure for removal of director is as follows:
A Company by ordinary resolution in an Annual general meeting or an extra ordinary General meeting can remove a director. Special Notice about the resolution to remove a director shall be issued to the members. A copy of the said notice to be send to the director to be removed also. The director shall be given an opportunity of being heard in the meeting.
If the director gives any written representation to the notice, then the said representation shall be given to all members. If the representation could not be given to all members, then the Director can request the said representation to be read out in the meeting. The members can pass an ordinary resolution, by simple majority and remove the director.
The director can be held responsible for his misdeeds under companies law and in criminal law as well.
Kindly contact us for any further details and action.
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