Add or remove
a company director.
The director’s dismissal can have three causes:
- His or her term is completed: during the Annual General Meeting (AGM), one-third of the directors must resign. If there are no other agreements, the directors must draw lots to resign in the first two years and directors with the longest term must resign in the third year. In addition, the AGM must appoint new directors for replacement.
- Decision from the Shareholders to dismiss a certain director (by Resolution from the Shareholders’ Meeting)
- Resignation by the director him- or herself (due to simple resignation, decease, bankruptcy or incapacity)
The company must organise a board of directors or a shareholders’ meeting, depending on the circumstances. If it is not specified in the Articles of Association that board of directors has the authority to make a resolution about the change of the director’s authority, only the shareholders’ meeting can take such resolution.
Registration for both the change of director and the change of director’s authority must be applied to the government by the authorised ‘old’ director and it must be submitted to the government within 14 days after the change.