Under Section 169 Companies Act 2013, a director may be REMOVED before the expiry of his term by:
Answer & Solution
Correct answer: D.
1. Section 169(1) Companies Act 2013: 'A company may, by ORDINARY RESOLUTION, remove a director, NOT BEING A DIRECTOR APPOINTED BY THE TRIBUNAL UNDER SECTION 242, before the expiry of the period of his office after giving him a reasonable opportunity of being heard.'
2. Proviso (added 2017): an INDEPENDENT DIRECTOR re-appointed for second term under Section 149(10) shall be removed by the company only by passing a SPECIAL RESOLUTION and after giving him a reasonable opportunity of being heard.
3. Section 169(2)-(7) prescribes the procedure (special notice from members holding ≥ 1%, copy to director, his representations, opportunity to speak at meeting, compensation rights).
4. Hence option B is correct.
_Source: Companies Act 2013 (Act 18 of 2013), Govt. of India MCA — Companies Act 2013, Section 169_
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