Resignation of Director
Director of a company can resign any time by sending notice in writing to the board of directors along with intimation to the Registrar of Companies (ROC) within the prescribed time limit. In this article will discuss the process of resignation of director, generally accepted format for intimation to board of directors, how to inform Registrar Of Companies (ROC), duties of resigning director, duties of company or board of directors.
Procedure of director resignation
Section 168 of the Companies Act 2013 covers up the provision of director resignation.
1. Intimation to Board of Directors
- Director shall send a notice in writing to the board of directors regarding resignation along with the reason for resignation.
- Effective date of resignation can be date of notice or any date mentioned in the notice (whichever is later). This means the director can not resign before the date of notice.
- Director shall also inform registrar of companies regarding resignation from directorship of company by filing form DIR 11 within 30 days of notice.
2. Duties of Companies
Once the company received resignation letter from director, the chairman of board of director take the note of it and follows
- Board sends a confirmation letter to the resigning director that the resignation letter has been received.
- Board intimate the fact of director resignation to registrar of companies by filing form DIR 12
- In next board meeting director resignation letter is presented before the board of director and recorded in minutes of meeting.
Duties of resigning director
Resigning director is continued to be responsible for his act or offence occurred during his tenure as director in the company. However the director is not responsible for any offence occurred after his resignation.