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2007 (7) TMI 404 - HC - Companies LawRemoval of Directors - Whether the removal of the plaintiff from the directorship of defendant No. 1 company is illegal, as alleged in the plaint? - Held that:- It is not in dispute that the plaintiff is a rotational director. Article 112(h) provides that both UPSIDC and the co-promoters shall have the right to remove or withdraw their nominees from the board of directors and further have a right to provide substitutes thereof. It is in furtherance of this power that the co-promoters have exercised their rights in the present case and sought to withdraw the plaintiff as a director nominated by them. Thus of the considered view that the co-promoters were well within their rights to have issued the letter dated 11-6-1993, whereby they sought to withdraw the nomination of the plaintiff as director of the co-promoters. Such nomination is not in the realm of nomination by the Central Government under section 408 of the said Act but the exception to section 284 of the said Act would also arise where articles provide to the contrary. The present case is one where there is such provision in the articles. Thus the discussion resulting in the decision taken on 29-6-1993, whereby the plaintiff was removed from the board of directors cannot be faulted. The issue is answered against the plaintiff.
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