According to company law
According to company law, how can the director of a company be appointed or removed from his/her position?
Two third of the total number of directors in a company are appointed by the shareholders. The other one third is appointed as prescribed in the articles of company law. Failing to abide by the articles would lead to the appointment of this one third done by the shareholders as well. In case of the private companies the articles can prescribe the appointment of all or any of the directors. If the articles do not specify this then all appointments must be done by the shareholders. The Companies Act also permits the Articles to provide for the appointment of two-thirds of the Directors according to the principle of proportional representation, if so adopted by the company in question.
The removal of a director can be done by an ordinary resolution of the general meeting after the special notice is given. This is not valid in terms of the directors appointed by proportional representation or by the central government.