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Under the Companies Act, 2013, who possesses the authority to remove a director from office? 1. Executive Officers 2. Auditors 3. Registrar of Companies 4. Shareholders in a general meeting

Question and options

Under the Companies Act, 2013, who possesses the authority to remove a director from office?
1. Executive Officers
2. Auditors
3. Registrar of Companies
4. Shareholders in a general meeting
  1. Only 1 and 2 are correct
  2. Only 2 and 3 are correct
  3. Only 3 and 4 are correct
  4. Only 4 is correct

Answer and explanation

Correct answer: D - Only 4 is correct
Under Section 169 of the Companies Act, 2013, a company may remove a director (other than one appointed by the Tribunal under Section 242) by an ordinary resolution of the shareholders in a general meeting, after giving the director a reasonable opportunity of being heard. Executive officers, the auditors and the Registrar of Companies have no power to remove a director.

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