Remove a Director/ Designated Partner in
3 simple steps, you get
- Step-by-step Expert Guidance
- DSC & DIN
- Documentation Review
- Amendment of LLP Agreement
- Fifling of all the necessary forms
Get in touch with a Bright Accounts expert.
Introduction
Removal of a director from a company and Removal of a Designated Partner from a Limited Liability Partnership can be done at any time. The Removal of a director from a company and Removal of a Designated Partner from a Limited Liability Partnership can occur voluntarily or through a demand. There are various reasons and procedures based on them.
In the case of a Private Limited Company. This event triggers compliance requirements, and it’s essential to inform the Registrar of Companies (RoC) within 30 days of the board resolution. Various forms, declaring resignation, appointment, or changes in directors, need to be filed with the Registrar of Companies (RoC).
Bright Accounts can assist you in smoothly navigating the process of adding or removing a director from your company, making it hassle-free for you.
Reasons for removal
A Director can be removed for the following reasons:
Absence
When there is absence of a Director from the board meetings over 12 months
Disqualification under other law
Any disqualification under order of any other law.
Voluntary
When the company receives Voluntary resignation from the Director himself.
Legal Disputes
Involvement of a Director in legal disputes based on the company's rules and regulatory requirements.
Disqualification
When a director incurs any disqualification specified under the Companies Act.
Violation
Violation of terms of the director's agreement or terms set by the board.
Documents Checklist
Documents checklist for Removal of a Director
Identity Proof
- Document Proof of Partners
- Notarized documents (For Foreign Nationals)
Address Proof
- Utility Bill or Bank Statement
For a Company
- Resignation Letter
- Board Resolution
- Form DIR-12
process
Process of Removing a Director
via 3 Different Methods
There are 3 different ways to remove a director from a Private Limited Company. The process for each has been listed out under them.
- Voluntary Resignation
- Convene Board Meeting to discuss resignation
- Formally approve the resignation and record the decision in the minutes of the meeting
- Filing Form DIR-11
- Filing Form DIR-12
- Intimate MCA
- Absence of a Director from board meeting for 12 months
- Convene Board Meeting to discuss resignation
- Pass a board resolution to remove the director
- Serve a notice
- Filing Form DIR-12
- Intimate MCA
- Removal by Shareholders
- Convene a general meeting of shareholders to discuss and vote on the removal of the director
- The company must give a special notice to the director.
- Pass an ordinary resolution
- Filing Form DIR-12
- Intimate MCA
Reasons for removal
A Designated Partner can be removed for the following reasons:
Terms of Agreement
Partners may cease to be a part of the LLP based on the terms outlined in the LLP agreement.
Insolvencey or Bankruptcy
If a designated partner becomes insolvent or bankrupt, it may impact the LLP's financial stability, and removal might be considered to protect the interests of the partnership.
Voluntary
Voluntary Resignation from the partner himself by providing written notice to other partners with a notice period of at least 30 days.
Majority
The removal of a partner can be carried out by a partners majority decision, if explicitly granted by the LLP agreement.
Disqualification
Acts of fraud, unethical conduct, or violations of partnership agreements can result in a breach of trust within the partnership. It becomes necessary to remove a partner involved in misconduct to safeguard the integrity and reputation of the Limited Liability Partnership.
Documents Checklist
Documents checklist for Removal a Designated Partner
Identity Proof
- PAN card
- Aadhaar Card/Passport/Driving License
- Notarized documents (For Foreign Nationals)
Address Proof
- Utility Bill or Bank Statement
For a Company
- Notice (within 30 Days)
- LLP Agreement
- Resignation Letter
- Form 4
process
Add a Designated Partner
in 3 Simple Steps
At Bright Accounts, we have simplified the entire process of Adding a Designated Partner into 3 simple steps. This makes your journey smooth, structured and easy.
- Voluntary Resignation
When a Designated Partner in a Limited Liability Partnership (LLP) decides to step down voluntarily, the process involves submitting a written notice of resignation to fellow Partners. This notice should be served at least 30 days in advance, allowing for a smooth transition.
- Removal by Default
Automatic removal of a Designated Partner in a Limited Liability Partnership (LLP) occurs under specific circumstances such as death of the partner, insolvency and dissolution of the LLP. When a Designated Partner incurs any disqualifications as specified under the Companies Act, convicted by a court for a criminal offence ,Non-compliance with the terms and regulations in the Companies Act, automatic removal is initiated.
- Removal by Majority Voting
In a Limited Liability Partnership (LLP), the removal of a partner cannot be carried out solely by a majority decision of other partners, unless explicitly granted by the LLP agreement. If the LLP agreement empowers such removal, it can be executed, and the process requires filing Form 4 to formalise the partner's removal.
In the dynamic landscape of Limited Liability Partnerships (LLPs), ensuring a smooth transition in the face of partner resignations, removals, or cessation is pivotal. LLP Form 4 serves as the backbone in this process, demanding prompt filing within 30 days of such events. Executed by a Designated Partner, this form necessitates collaboration with a certified professional – a Chartered Accountant, Company Secretary, or Cost Accountant. Their certification not only attests to the credibility of the LLP’s books and records but also underlines the commitment to accuracy and compliance in LLP operations.
What do you get
when Bright Accounts manages Removal of Director/Designated Partner
Let Bright Accounts manage Removal of a Director/Designate Partner
When you let Bright Accounts manage Removal of a Director/Designate Partner, you not only get comprehensive services mentioned on the side, you also get a friend who advices, guides and helps you grow into a great business.
- Gather the details of the business
- Amendment of LLP Agreement
- DSC & DIN
- Filling of all the necessary forms
- Expert advice you can count on
- Our Bright support throughout the process
Why Bright Accounts
There are many reasons why clients choose Bright Accounts, but from our experience we have listed the four main reason why you should go with us.
Bright & Knowledgeable
Bright Accounts delivers high quality financial services by a team of bright and knowledgeable experts.
Always happy to help
Bright Accounts commit to provide dedicated support and assistance to our clients.
Professional & Approachable
We maintain a high level of professionalism while being easily approachable for our clients.
Easy & Quick
We focus on streamlining and simplifying the complex processes for our clients.
The entire process is managed by Experienced Chartered Accountants and Company Secretaries.
Frequently Asked Questions
No, a Director/Designated Partner can be removed without their consent. However, such removal calls for a strict procedure to be followed.
The minimum number of directors required is based on the type of company. For a one-person company, it is 1, for a private company it is 2, and a public company needs to have at least 3 directors.
No, the process is 100% online, in case we need your presence we will inform you.
A person cannot be appointed as a director if they don’t qualify under the AoA, if they are undischarged bankrupt, or if they are restricted by a court order.
A private company can have a maximum of 15 directors.
Bought Together
There are many reasons why clients choose Bright Accounts, but from our experience we have listed the four main reason why you should go with us.
Private Limited Company Annual Compliances
Ensure seamless compliance for your Private Limited Company with Bright Accounts' Annual Compliance Services managed by experts.
Limited Liability Partnership Annual Compliances
Navigate LLP annual compliance effortlessly with Bright Accounts. Our dedicated team ensures timely submission and adherence to rules.
Outsource Accounting & Bookkeeping
Save valuable time, money and labor by outsourcing your accounting and bookkeeping tasks to Bright Accounts experts.