Ministry of Corporate Affairs (MCA) has come out with an amendment in the provisions of Section 169(1) of the Companies Act, 2013 vide its Companies(Removal of Difficulties) Order, 2018.

As per Sub-section (10) of Section 149, an Independent Director is re-appointed for second term, only by way of Special Resolution. However, as per Section 169(1), a director of the company can be removed by passing an Ordinary Resolution, not by Special Resolution.

In order to remove the above difficulties, MCA came out with this order amending Section 169(1) by inserting first proviso in sub-section(1), according to which, an Independent Director reappointed under Section 149(10), shall be removed only by passing of Special Resolution.