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Resignation of Director

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Resignation of Director- An Overview

The Director may at any time decide to resign from the board by giving the proper notice to the Company of his/her disassociation with the company. The Resignation may be because of any reason namely:

  • Preoccupation anywhere else or better career option.
  • Irregularities in Company affairs or any personal reason.
  • Disagreement with Board of Directors.
  • Withdrawal of nomination by Nominee

Whatever may be the reason the Director may give the simple resignation letter stating the reason in writing and the Board shall on receipt of such notice take note of the same and the Company shall intimate the Registrar and shall also place the fact of such resignation in the report of directors laid in the immediately following General Meeting by the Company. [Section 168 of the Companies Act, 2013]

Get the Director Resignation done

Obligation on part of Outgoing Director

  • Make sure that the resignation has been mailed or handed over to the company.
  • Proof of Dispatch of resignation is there along with effective date of resignation.
  • Although not mandatory but file form DIR-11 post resignation.

Obligation of Company for filing resignation of Director to ROC

  • The Board of Directors of Company shall take into consideration the resignation as handed over by the outgoing director and shall pass the resolution of Board accepting the resignation and communicate the same to the outgoing Director.
  • The Board of Director / Company shall file Form DIR-12 within 30 days from the date of resignation keeping in mind that the number of directors should not be less than the number specified by the Companies Act, 2013.
  • While Filing DIR -12 Following attachments must be attached :
    • The Resignation letter as received from outgoing Director.
    • The Evidence in support that the resignation has been acknowledged.
    • Resolution passed by Board of Directors.
  • File Necessary Amendment Application under following Acts:
    • Goods and Services Act
    • Shops & Establishment Act
    • Factories Act
    • Foreign Exchange Management Act
    • Inter-State Migrant workmen Act
    • Private Security Agency Act
    • EPF
    • ESI
    • Other Labour Laws

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