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Under section 169(1) of the Companies Act, 2013, how may a company remove a director, other than one appointed by the Tribunal, before the end of the director's term?

Question and options

Under section 169(1) of the Companies Act, 2013, how may a company remove a director, other than one appointed by the Tribunal, before the end of the director's term?

  1. By a special resolution of its members

  2. By an ordinary resolution of its members

  3. By an order of the Tribunal on its petition

  4. By a resolution of its Board of directors

Answer and explanation

Correct answer: B - By an ordinary resolution of its members

Section 169(1) of the Companies Act, 2013 allows a company to remove a director, other than a director appointed by the Tribunal under section 242, before the expiry of the term by an ordinary resolution, after giving the director a reasonable opportunity of being heard. A special resolution is not required, and the Board itself has no power to remove a director.

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