Wednesday, July 30, 2008

Companies Act_Practical Problems_26

Adam, a 15% shareholder of a company and other shareholders have lost confidence in the Managing Director (MD) of the company He is a director not liable to retire by rotation and was re-appointed as Managing Director for 5 years w.e.f. 1.4.2005 in the last Annual General Meeting of the company.

Mr. Adam seeks your advise to remove the MD after following the procedure laid down under the Companies Act, 1956.
(i) Specify the steps to be taken by Mr. Adam and the Company in this behalf;
(ii) Is it necessary to state reasons to support the resolution for his removal?

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