In most legal systems, the appointment and removal of directors is voted upon by the shareholders in general meeting.[6]
Directors may also leave office by resignation or death. In some legal systems, directors may also be removed by a resolution of the remaining directors (in some countries they may only do so "with cause"; in others the power is unrestricted).
Some jurisdictions also permit the board of directors to appoint directors, either to fill a vacancy which arises on resignation or death, or as an addition to the existing directors.
In practice, it can be quite difficult to remove a director by a resolution in general meeting. In many legal systems the director has a right to receive special notice of any resolution to remove him;[7] the company must often supply a copy of the proposal to the director, who is usually entitled to be heard by the meeting.[8] The director may require the company to circulate any representations that he wishes to make.[9] Furthermore, the director's contract of service will usually entitle him to compensation if he is removed, and may often include a generous "golden parachute" which also acts as a deterrent to removal.
2006-12-01 12:37:52
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answer #1
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answered by Anonymous
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A board of director can be expelled from his office if he has committed offenses iniminal to the company such as conflict in interest, deriviing profit that should instead go to the company and other offenses as enumerated in the Laws of Corporations. The removal can be done by the majority vote of all the board of directors and approved by majority of the stockholders.
2006-12-01 12:38:52
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answer #2
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answered by FRAGINAL, JTM 7
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Mostly depends on the company's policy, but most have to be voted out by the board by a certain majority or if the board member has committed a crime that punishable by removal.
2006-12-01 12:37:20
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answer #3
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answered by Anonymous
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If he has violated any of the by-laws whose penalty is removal. Otherwise, it could lead to an ugly legal battle. There could also be a clause in the by-laws that state how a director could be removed by majority voting.
2006-12-01 12:37:45
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answer #4
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answered by ramshi 4
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2016-12-29 18:58:50
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answer #5
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answered by guillotte 3
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