In a general meeting, a motion was put for removal of small shareholders' director. A small shareholder contended that only small shareholders are entitled to vote on this motion as it is related to removal of small shar
CS Executive · Company Law · PYQS · December 2018
In a general meeting, a motion was put for removal of small shareholders' director. A small shareholder contended that only small shareholders are entitled to vote on this motion as it is related to removal of small shareholders' director and motion should be passed as special resolution. Is the argument valid ? Analyse with reference to the provisions of the Companies Act, 2013.
Answer & Explanation:
A small shareholder director can be removed by in pursuance to section 169 of Companies Act, 2013 by passing an ordinary resolution in a general meeting. All the shareholders are eligible to vote irrespective of small shareholder or otherwise. The argument hence is not valid.
Topics: Directors
Related Questions in this Topic
- Jupiter Ltd. appointed Ashok as an Independent director for a term of three years. Upon completion of his first term, he...
- Metal Ltd. created a mortgage over its heavy machineries in respect of a loan given by the sister of Krish, a director o...
- Examine the validity of the following: Karna Kumar Baag, nominee director appointed by BICCI Bank Ltd. is removed from d...
- Examine the validity of the following: Sudarshan Chakraborty, aged 20, is appointed as independent director on the Board...
- Sukanya is director in nine public limited companies, one dormant public limited company and ten private limited compani...