Definition: is the process of firing an individual or individuals holding the office as directors by prosecuting a resolution passed by the shareholders that releases the employees from their position regardless of whether they have signed a long-term agreement with the company. However, that doesn’t mean that the firm won’t suffer from any contract damages if the dismissal hasn’t been a punishment for illegal activity on the part of the directors.
In a Sentence:
The shareholder has expressed his intention to go forward with the dismissal of directors responsible for the company’s poor performance in the last quarter.
Once the dismissal of directors was finalized, the firm was forced to compensate the individuals they’ve fired for the term remaining on their contracts.
Synonyms and related words: shareholder, statutory director, guarantor, article of association