Commentary on Sections
Part 2: Community Interest Companies
Summary and background
Supervision by Regulator
Section 46 - Removal of director
248.This section gives the Regulator power to remove a director from a CIC (subsection (1)) or suspend a director for up to one year (subsections (3) and (4)), and prevents a CIC from reinstating a director removed by the Regulator (subsection (2)). The exercise of these powers is subject to the company default condition being satisfied (section41(2)).
249.The section sets out procedures which the Regulator must follow when exercising these powers (subsections (8), (9) and (11)). Where the Regulator makes an order to remove a director and then discharges the order, the discharge does not in itself reinstate the person concerned as a director (subsection (7)). Any director suspended or removed by the Regulator will have a right of appeal to the courts in respect of the use of this power (subsection (10)). The Civil Procedure Rules (Part 52) or, in Scotland, the Rules of the Court of Session (Part III of Chapter 41) set out the procedural rules applying to such an appeal.
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