Company directors removal in Colchester and other parts of the UK is essential because, as with all other aspects of life, people do fall out regularly in business and some times a dispute cannot be resolved.
Typically, it is recommended by Andrew Douglas Wills and Legal Services that company directors removal in Colchester and elsewhere in the UK should be followed:
1. Look at the Company’s Articles (and any shareholders’ agreements) as these will set out certain requirements that your particular company must follow. They will also set out certain circumstances that will automatically lead to a directorship being terminated, which may include bankruptcy, absence, mental disorder, failure to take up or pay for shares, and others. Also, note whether there is a minimum number of directors needed, as you may need to replace the leaving director with someone else.
2. Consider tactics carefully and consider the various roles that the director holds. Take legal advice at this stage if you are uncertain of how best to remove someone.
3. Talk to the director and see if you can come to an agreement for them to resign. Take everything into account and see whether you can agree a payment package including payment for any shares they have.
4. Call a shareholders’ meeting to remove the director via an ordinary resolution* if the Articles don’t cover your particular situation and the director won’t resign voluntarily.
5. Once the director has been removed, hold a board meeting to formally record the resignation or record the reason the director has been dismissed (if not decided at a shareholders’ meeting).
6. Record the termination in the company’s Register of Directors. This is the formal registration of their directorship being terminated, not anything Companies House does.
7. Send Form TM01 to Companies House. This is how you update the public record of who your directors are. It is not this step that terminates the appointment.
8. Notify the company’s bank and insurers.
9. Change the company’s website and stationery if the directors are mentioned there.

* If a shareholder wishes to propose an ordinary resolution, special notice of this intention must be given at least 28 days before the meeting at which the resolution is being motioned. A copy of the resolution must also be sent to the relevant Director. Once this notice requirement has been met, the shareholders must hold a general meeting in order to discuss the decision and decide whether or not the director should be removed. At this general meeting, the Director concerned has the right to speak or make written representations. The decision is based on whether or not the resolution for removal of the director receives a majority vote.

Contact Andrew Douglas Wills and Legal Services today via www.andrewdouglaswills.co.uk to see how we could help you with company directors removal in Colchester and throughout the rest of Essex.

Follow us on Twitter at https://twitter.com/ADouglasWills.

Follow us on Facebook at https://www.facebook.com/AndrewDouglasWills.