4 Reasons for Dismissal of Company Secretary

A company secretary has a great role in every stage of company formation. But a company needs to dismiss a secretary sometime. 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

The 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 proven:

  • As a fraud,
  • To break the code of conduct,
  • To have moral erosion,
  • To neglect duties intentionally,
  • To have a permanent inability,
Reasons for Dismissal of Company Secretary
Reasons for Dismissal of Company Secretary

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 the 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.

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