Resignation of a Director
Resignation of a Director, When a directors decides to resign from a company, the following steps need to be followed:
Written Resignation:
The director should draft a written resignations letter addressed to the board of directors. The letter should include the reason for resigning and the effective date of the resignation.
Board Meeting:
The board of directors should convene a meeting to acknowledge and accept the director’s resignation. This meeting serves as an official acceptance of the resignation.
Filing with Registrar of Companies:
After the board accepts the resignation, the company is require to file the necessary forms and documents with the Registrar of Companies (ROC) within 30 days. These filings notify the ROC about the change in the directorship.
Submission of Documents:
Along with the necessary forms, the resigning director should provide a copy of the resignation letter and any other required documents to the ROC. This ensures proper documentation of the resignation.
Updating Records:
The company must update its records, such as the register of directors, register of members, and other statutory registers, to reflect the director’s resignation. This helps maintain accurate and up-to-date information.
Returning Company Property:
As part of the resignation process, the resigning director must return any company property in their possession, including books, papers, keys, and other items belonging to the company.
By following these steps, the resignation of a director can be properly documented and processed in accordance with legal and regulatory requirements.
It’s important to note that the resignation of a director does not affect any liability incur by the director while he or she was serving as a director of the company.
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