In the 2013 Act, there has been a major alteration in the statutory scheme (as compared to Companies Act, 1956) for removal of directors from the board of a company. Section 169 of the 2013 Act deals with the procedure for removal of a director. While Section 169 is essentially similar to Section 284 of the 1956 Act, the following change has been made by Parliament in the 2013 Act.
Clause 7(b) of Section 284 of the Companies Act, 1956 read as under:
“284. Removal of directors.
———–
(7) Nothing in this section shall be taken-
(a) ————
(b) as derogating from any power to remove a director which may exist apart from this section.” [Emphasis supplied]
Whereas, sub-section 8(b) of Section 169 of the 2013 Act reads as under:
“169. Removal of directors.
—————–
(8) Nothing in this section shall be taken-
(a)————; or
(b) as derogating from any power to remove a director under other provisions of this Act.” [Emphasis supplied]
Source: Barandbench
