A company secretary has a great role in every stage of company formation. But a company needs to dismissal a secretary some time. We are going to describe those reasons for dismissal of company secretary.
Dismissal of Company Secretary
A company secretary may be dismissed due to the below reasons:
1. Disqualification of company secretary: Employee-Employer relationship exists between a company secretary and the company. If the board of directors is not satisfied with the performance of the company secretary, they can remove him from giving prior written notice.
2. Irregularities of company secretary: A company secretary can be fired at any time without any prior written notice if he has been proved:
- As a fraud,
- To break the code of conduct,
- To have moral erosion,
- To neglect duties intentionally,
- To have permanent inability,
3. End of the contract of company secretary: A company secretary is appointed for a fixed term. If the board of directors does not renew the contract then his contract ends up automatically.
4. Winding up of the company: During winding up of a company, the company secretary is discharged like other employees. If winding up takes place before the expiry of the fixed term, he can claim damages for the breach of contract.
Related Content of Secretarial Function:
- Appointment of Company Secretary in Effective Ways
- Company Secretary Definition
- Role of Company Secretary in Every Stage
- Types of Secretary with its Definition
- Company Secretary Qualification and Qualities
- Duties of Private Secretary
- Definition and Qualities or Features of a Private Secretary
- Powers and Rights of Company Secretary
- Legal Status or Position of Company Secretary
- Company Secretary Duties and Responsibilities
- Importance of Company Secretary
- Liabilities of Company Secretary