Adding a Director in Changes in Pvt Ltd Company
Changes in Pvt Ltd Company, as per section 260 and section 284 of the Companies Act, 1956 :-
The Association of a company are the source of authority from where the Board of Directors are add or removed.
Firstly, changes in Pvt Ltd Company, the Articles of Incorporation must provide for the addition of Directors.
Secondly, the person appointed must be eligible as per the relevant clauses in the Articles of Association.
After that, they must give his consent to be a director in written form which the company must register with itself.
Removing a Director
Every private company should have a minimum two directors whereas a public company shall have a minimum of three directors.
Moreover, a company can remove a director if he incurs any of the disqualifications specified under the Act.
For instance, absents himself/herself from board meetings over 12 months.
In addition, enters into contracts or arrangements against the provisions of section 184.
After that, disqualified by an order of a court or Tribunal, or is convicted by a court of any offense.
The removal of a director becomes also necessary if he/she has not follow protocols mentioned in the Companies Act.
Increase Authorized Capital
Firstly, it is the authorized capital of a private company that determines the maximum number of shares it can issue.
Secondly, most start-ups begin with the minimum authorized capital of Rs.1 lakh, which becomes too little as the business grows.
Thirdly, the capital clause of the Memorandum of Association is amended by passing a special resolution by the board.
Close the Pvt Ltd Company
Simply put, Liquidation is the process initiated by a company to close its operations.
Moreover, the company may decide to wind up due to various reasons such as unwillingness to continue with the operations, insolvency and so on.
In addition, as the term suggests, liquidation of a company refers to liquidating the assets of the company.
Similarly, by initiating the liquidation process, the company may sell its assets to meet obligations and repay liabilities.
Therefore, if a company is liquidated due to bankruptcy, the liquidator can sell its assets to repay all pending liabilities.
The remaining balance, if any, after repayment to the creditors, gets distributed among the shareholders of the company.