Erring managing director

Shareholders have the ability to remove a director from their position before the end of their term of office by passing an ordinary resolution as per Section 169 of the Companies Act of 2013. However, before taking this action, the director must be given a fair opportunity to be heard.

Thus, under the 2013 Act, a company can remove a director only in a general meeting by passing an ordinary resolution and if he has not been appointed as a director under the principle of proportional representation or under section 163.