A Director of Company can be removed from his Office before the expiry of his term by

• the Shareholders
• the Central Government 
• the Company Law Board

(i) Removal by shareholders (Sec- 169): A company may, by giving a special notice and passing an ordinary resolution, remove a director before the expiry of his period of office.

(ii) Removal by the Central Government: The Central Government has been empowered to remove managerial personnel from office on the recommendation of the Company Law Board under the following situations:

• Where a person concerned in the conduct and management of the affairs of a company has been guilty of fraud and negligence.
• If the business is managed by a person without sound business principles.
• Where the business of a company has been managed by such a person, who likes to cause injury or damage to the business.

Removal by the Company Law Board: If an application has been made to the Company Law Board against the oppression and mismanagement of the company’s affairs by a director, then the Company Law Board may order to terminate the director.