Resignation of a Director in a Company
A Director in a company may want to resign or the Board of Directors may want to remove the Director for several reasons. The Director of a company can also resign from the Board by filing a resignation letter with the company and also intimating the ROC with the same. Here, we will take a look at the procedure that a director needs to follow in case he wants to resign from the post of Director.
After giving notice in writing to the Company a Director may resign from a company. The Board is required to intimate the ROC of this notice within 30 days in the form of DIR-12. If the Director chooses, he can also send a copy of the resignation letter to the ROC along with the reasons for the resignation using Form DIR-11. Here is the format for the resignation letter of a Director:
- The Board of Directors shall take considers the notice of resignation that is received and accordingly the resolution should be passed by the Board of Directors for accepting the resignation and it is necessary to draft the minutes of the meeting of the Board of Directors.
- The Registrar should be intimated in Form DIR12 (According to Rule 15 of the companies,2014) the Board of Directors should be intimated within 30 days from the date the resignation is received.
- The board of directors should mention the resignation in the Director’s report of the annual general meeting and it should also be reflected on the website of the Company.
- The company is required to attach these documents while filing DIR1:
1) The notice of resignation (Mandatory)
2) Evidence of cessation (The board resolution or the acceptance letter can be attached)
- Once the Director has resigned and the Board has accepted his resignation, the Director is not liable for any liabilities that are incurred by the company after the date of acceptance of the resignation.
- However, a Director is still liable for any offenses that have occurred during his or her as the director of the Company.