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Removal of a Director from a Company

Directors are responsible for the day-to-day running of the business. As a shareholder, you may not be satisfied with the way that they are performing, or you may have fundamental differences about the way the business should be run.

You may, therefore, wish to remove a director (and possibly install a replacement). Prior to taking any steps to dismiss a director, however, you will need to consider their employment rights.

Your mechanisms to remove a director will be found in the articles of association, the director’s service contract and the Companies Act 2006.

You will need to comply with the requirements to give the director the correct notice and follow the correct procedure.

Further information

These steps can be complex and if not followed correctly, the removal may be voided. By seeking legal advice early, you can ensure that the correct procedure is followed and that you do not expose yourself to an employment claim by the departing director.

For straightforward and practical help and advice, speak to our commercial lawyers in Bristol and South Gloucestershire on 0117 905 9763 or complete our online enquiry form.

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