{"id":57630,"date":"2023-06-08T04:00:01","date_gmt":"2023-06-07T22:30:01","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=57630"},"modified":"2023-06-02T18:56:42","modified_gmt":"2023-06-02T13:26:42","slug":"removal-of-a-company-secretary-under-the-companies-act-2013","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/removal-of-a-company-secretary-under-the-companies-act-2013\/","title":{"rendered":"Removal of a Company Secretary under the Companies Act, 2013"},"content":{"rendered":"\n<p>The Companies Act 2013 is the governing legislation for companies in\nIndia. It outlines various provisions and guidelines for the functioning and\nmanagement of companies, including the appointment and removal of key officers\nsuch as the company secretary. Under the Companies Act 2013 in India, the\nposition of a company secretary holds great importance in ensuring compliance\nand maintaining corporate governance within a company. However, there may be\nsituations where it becomes necessary to remove a company secretary from their\nrole. In this article, we will discuss the circumstances in which a company\nsecretary may be removed after company registration in India and also discuss\nthe removal of a company secretary while adhering to the provisions of the\nCompanies Act 2013.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/removal-of-a-company-secretary-under-the-companies-act-2013\/#Who_is_a_Company_Secretary\" >Who is a\nCompany Secretary?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/removal-of-a-company-secretary-under-the-companies-act-2013\/#Grounds_for_Removal_of_a_Company_Secretary\" >Grounds for\nRemoval of a Company Secretary<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/removal-of-a-company-secretary-under-the-companies-act-2013\/#Brief_Idea_on_Procedural_Requirements_for_Removal_of_a_Company_Secretary\" >Brief Idea on\nProcedural Requirements for Removal of a Company Secretary<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/removal-of-a-company-secretary-under-the-companies-act-2013\/#A_Step-by-Step_Guide_for_the_Removal_of_a_Company_Secretary_in_India_as_per_Companies_Act_2013\" >A Step-by-Step\nGuide for the Removal of a Company Secretary in India as per Companies Act 2013<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/removal-of-a-company-secretary-under-the-companies-act-2013\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_is_a_Company_Secretary\"><\/span>Who is a\nCompany Secretary?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A <strong><a href=\"https:\/\/corpbiz.io\/learning\/the-role-of-the-company-secretary\/\">company secretary<\/a><\/strong> plays a vital role in ensuring compliance with legal and regulatory requirements, maintaining transparent corporate governance, and facilitating effective communication within the company and with external stakeholders. However, certain situations may arise where the removal of a company secretary becomes necessary. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Grounds_for_Removal_of_a_Company_Secretary\"><\/span>Grounds for\nRemoval of a Company Secretary<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Under Section 203 of the Companies Act 2013, a company secretary can\nbe removed by the company&#8217;s board of directors or shareholders under certain\ncircumstances. These grounds for removal of a Company Secretary include:<\/p>\n\n\n\n<ul><li><strong>Resignation:<\/strong> A company secretary may voluntarily resign from their position by submitting a resignation letter to the company&#8217;s board of directors. The resignation should be duly acknowledged and recorded in the minutes of the board meeting. Upon resignation, the company secretary ceases to hold the office, and the company must appoint a new secretary within 6 months.<\/li><li><strong>Removal by the Board of Directors:<\/strong> The board of directors may remove a company secretary if there are valid reasons to do so. These reasons may include:<ul><li><strong><em>a. Incompetence or Negligence<\/em><\/strong>: If the company secretary fails to perform their duties diligently, exhibits incompetence, or engages in acts of negligence that harm the company&#8217;s interests, the board may decide to remove them.<\/li><li><strong><em>b. Breach of Confidentiality<\/em><\/strong>: If the company secretary breaches their duty of confidentiality by disclosing sensitive company information without proper authorization or for personal gain, it can lead to their removal.<\/li><li><strong><em>c. Non-Compliance<\/em><\/strong>: If the company secretary consistently fails to comply with legal and regulatory requirements, violates provisions of the Companies Act, or fails to maintain proper records, the board may consider removal.<\/li><li><strong><em>d. Misrepresentation or Fraud<\/em><\/strong>: Any acts of misrepresentation, fraud, or dishonesty by the company secretary can be grounds for their removal.<\/li><li><strong>e. Conflict of Interest<\/strong>: If the company secretary has a conflict of interest that hinders their ability to act in the best interests of the company, the board may decide to remove them.<\/li><\/ul><\/li><li><strong>3. Removal by Shareholders:<\/strong> Shareholders of the company may pass a special resolution to remove the company secretary if they are dissatisfied with their performance or conduct. The resolution must be approved by at least 75% of the shareholders present &amp; voting at a general meeting.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Brief_Idea_on_Procedural_Requirements_for_Removal_of_a_Company_Secretary\"><\/span>Brief Idea on\nProcedural Requirements for Removal of a Company Secretary<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The removal of a company secretary, whether initiated by the board\nor shareholders, must follow the procedural requirements prescribed by the\nCompanies Act 2013. These include:<\/p>\n\n\n\n<ol><li><strong>Notice:<\/strong> A notice must be issued to the company secretary, providing a reasonable opportunity for them to present their case before the board or shareholders.<\/li><li><strong>Board or General Meeting:<\/strong> A meeting of the board of directors\/shareholders, as applicable, must be convened to discuss and decide upon the removal of the company secretary. The removal should be properly recorded in the minutes of the meeting.<\/li><li><strong>Intimation to Registrar of Companies:<\/strong> Once the removal decision has been made, the company must intimate the Registrar of Companies (RoC) within 30 days, along with the necessary documentation.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_Step-by-Step_Guide_for_the_Removal_of_a_Company_Secretary_in_India_as_per_Companies_Act_2013\"><\/span>A Step-by-Step\nGuide for the Removal of a Company Secretary in India as per Companies Act 2013<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Following is the step-by-step\nprocess for the removal of a Company Secretary:<\/strong><\/p>\n\n\n\n<ul><li><strong>Step 1: Board Meeting and Passing of a Special Resolution:<\/strong><\/li><\/ul>\n\n\n\n<p>The removal process begins with convening a board meeting to discuss\nthe removal of the company secretary. The board must pass a special resolution\nfor the removal, as stipulated in Section 203 of the Companies Act 2013. The\nresolution should clearly mention the reasons for removal and be approved by a\nmajority of the directors.<\/p>\n\n\n\n<ul><li><strong>Step 2: Filing of Form DIR-12:<\/strong><\/li><\/ul>\n\n\n\n<p>After passing the special resolution, the company is required to\nfile Form DIR-12 with the Registrar of Companies (RoC) within 30 days from the\ndate of passing the resolution. Form DIR-12 is used for the appointment or\ncessation of directors, including the removal of a company secretary. The\nfollowing vital documents must be attached to the form:<\/p>\n\n\n\n<p><strong>a.<\/strong> Certified copy of the board resolution for the removal of the company secretary.<\/p>\n\n\n\n<p><strong>b.<\/strong> Notice of the board meeting where the resolution was passed.<\/p>\n\n\n\n<p><strong>c.<\/strong> Resignation letter from the company secretary, if applicable.<\/p>\n\n\n\n<p><strong>d.<\/strong> Any other relevant documents as required by the RoC.<\/p>\n\n\n\n<ul><li><strong>Step 3: Intimation to the Company Secretary:<\/strong><\/li><\/ul>\n\n\n\n<p>The company must formally communicate the decision to remove the\ncompany secretary by issuing a letter or notice. The letter should mention the\neffective date of removal and inform the company secretary about their rights\nto be heard at a general meeting. It is essential to maintain transparency and\nadhere to the principles of natural justice throughout the process.<\/p>\n\n\n\n<ul><li><strong>Step 4: Filing of Form MGT-14:<\/strong><\/li><\/ul>\n\n\n\n<p>Once the company secretary is removed, the company is required to\nfile Form MGT-14 with the RoC within 30 days of passing the special resolution.\nForm MGT-14 is used to notify the RoC about the resolution passed at the\ngeneral meeting. The following vital documents should be attached to the form:<\/p>\n\n\n\n<p><em><strong>a.<\/strong> Certified copy of the special resolution passed for the removal of the company secretary.<\/em><\/p>\n\n\n\n<p><em><strong>b.<\/strong> Notice of the general meeting where the resolution was passed.<\/em><\/p>\n\n\n\n<p><em><strong>c.<\/strong> Any other relevant documents as required by the RoC.<\/em><\/p>\n\n\n\n<ul><li><strong>Step 5: Updating Statutory Registers:<\/strong><\/li><\/ul>\n\n\n\n<p>The company must update its statutory registers to reflect the\nchange in the position of the company secretary. The registers that need to be\nupdated include the Register of Directors &amp; Key Managerial Personnel (KMP),\nthe Register of KMPs, and any other relevant registers maintained by the\ncompany.<\/p>\n\n\n\n<ul><li><strong>Step 6: Compliance with Additional Requirements:<\/strong><\/li><\/ul>\n\n\n\n<p>The company should ensure compliance with any additional\nrequirements specified in its articles of association or any agreement entered\ninto with the company secretary. For example, if there are notice periods or\nspecific provisions regarding termination in the employment contract, those\nshould be followed accordingly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In summary, <strong>the Companies Act 2013<\/strong><sup><a href=\"https:\/\/www.mca.gov.in\/Ministry\/pdf\/CompaniesAct2013.pdf\"><strong>[1]<\/strong><\/a><\/sup> provides guidelines and grounds for removing a company secretary, whether initiated by the board of directors or shareholders. The removal process must adhere to the procedural requirements laid out in the provisions. Removing a company secretary after company registration in India requires adherence to the provisions outlined in the Companies Act 2013. By following the step-by-step guide provided above, companies can ensure a smooth and legally compliant process for removing a company secretary. It is crucial to consult with legal professionals or company secretaries to ensure all legal obligations are met and to mitigate any potential legal risks during the removal process. While the appointment of a company secretary is a crucial step for ensuring compliance and efficient corporate governance, circumstances may arise where their removal becomes necessary.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read Our Article<\/b>: <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/annual-compliance-of-a-public-limited-company\/\">Annual Compliance Of A Public Limited Company: Rules And Procedures<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Companies Act 2013 is the governing legislation for companies in India. It outlines various provisions and guidelines for the functioning and management of companies, including the appointment and removal of key officers such as the company secretary. Under the Companies Act 2013 in India, the position of a company secretary holds great importance in [&hellip;]<\/p>\n","protected":false},"author":55,"featured_media":57631,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[154],"tags":[3724],"acf":{"service_id":"1"},"authorName":"Soumyadipa Banik","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2023\/02\/MicrosoftTeams-image-66.jpg","authorDescription":"Soumyadipa is a legal professional and has completed her Masters (L.L.M.) in Business Law from Amity University. She is an aspiring content writer and legal researcher with more than a year experience. She have earlier worked for Startup companies and written business and legal articles, blogs and website content. She is good at presenting complex issues in organized, easy-to-understand terms and committed to provide highly persuasive content.","postViews":11136,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/57630"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=57630"}],"version-history":[{"count":2,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/57630\/revisions"}],"predecessor-version":[{"id":57633,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/57630\/revisions\/57633"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/57631"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=57630"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=57630"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=57630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}