Useful Notes on Expulsion of a Member in a Company (Indian Companies Act, 1956)
A company limited by guarantee such as a social club, professional, cultural, religious or other such associations may expel any member of the company in accordance with the regulations and provisions contained in the articles of association.Expulsion on the ground such as mis-conduct of the members is also possible. But the requisite in such case would be exercise of the power in the interest of the company as a whole not for a particular group of the members.In the case of companies having share capital any provision in the articles of the company on expulsion of a member would be against the principle of corporate democracy and in violation of sections 100-104. The Department of Company Affairs issued a clarification by a circular dated November 1, 1975 regarding company’s power…