Removal:
Article 107 provides that the managing director's "appointment shall be automatically determined if he cease from any cause to be a director". However it was explained in Southern Foundries Ltd v Shirlaw (77) that if the appointment constituted a service agreement with the company the managing director would be entitled to sue the company for damages if the removal from directorship derogated from the terms of the agreement and constituted a breach of it, such as being removed before the period fixed in the service agreement expired. If on the other hand the appointment does not constitute a service contract the managing director would have no remedy for premature removal, as illustrated by Read v Astoria Garage Ltd (78).