Director Resignation Process and Documentation under Companies Act 2013

PROCESS OF THE RESIGNATION OF THE DIRECTOR UNDER THE COMPANY ACT, 2013 AND COMPLETE DOCUMENTATION REQUIRED

If any director wants to resign from the company what is the process the process of resignation of the director, is mentioned in section 168 of the companies Act, 2013 and it contains that if any director wants to give resignation first of all he will give he or she will give a resignation notice to the company thereafter company will record or file the form DIR-12 for resignation of the director detailed process of resignation is mentioned here in under.

PROCEDURE RELATED TO RESIGNATION OF DIRECTOR UNDER COMPANIES ACT, 2013

i) The Director who will resign, shall first submit his resignation letter to the Board of Director mentioning his reason for resignation and effective date of resignation.

ii) The board takes note of his resignation and issue a notice for holding of Board Meeting.

iii) Pass Board Resolution at Board Meeting for accepting his resignation by mentioning effective date of resignation, with giving appreciation to the director and authorize to file & sign necessary E-forms.

iv) File eForm No. DIR-12 with detailing particulars regarding Cessation of Director by affixing DSC of authorised director and practicing CA / CS / CMA.

v) Pay requisite fee (currently Rs. 600/-) against generated SRN.

PROVISIONS OF THE COMPANIES ACT, 2013 FOR RESIGNATION

(1) A director may resign from his office by giving a notice in writing to the company and the Board shall on receipt of such notice take note of the same and the company shall intimate the Registrar in such manner, within such time and in such form as may be prescribed and shall also place the fact of such resignation in the report of directors laid in the immediately following general meeting by the company:

Provided that a director may also forward a copy of his resignation along with detailed reasons for the resignation to the Registrar within thirty days of resignation in such manner as may be prescribed.

(2) The resignation of a director shall take effect from the date on which the notice is received by the company or the date, if any, specified by the director in the notice, whichever is later:

Provided that the director who has resigned shall be liable even after his resignation for the offences which occurred during his tenure.

(3) Where all the directors of a company resign from their offices, or vacate their offices under section 167, the promoter or, in his absence, the Central Government shall appoint the required number of directors who shall hold office till the directors are appointed by the company in general meeting

Resignation Letter by Director has to be filed along with DIR- 11 with the ROC.

If the director of a company wishes to resign or the board decides to terminate a director for several reasons. The Director of a company can quit the board by documenting a resignation letter with the company and providing all the intimations to the Registrar of Companies (ROC).

A director may quit a company by providing notice in writing to the company and the board is expected to infer the ROC of such heed within 30 days in form DIR-12. In case the director selects, they may also deliver a document of the resignation letter to the ROC along with the explanations for resignation using form DIR-11.

FORMAT OF RESIGNATION LETTER BY DIRECTOR

 Date: ————

To The Board of Directors

Name of the Company]

[Address———-]

Sub: Resignation Letter

Dear Sir/Madam, I, ———————- R/o —————————————————–,Unfortunately, I must step down from my corporate directing post due to confidential and unavoidable circumstances. Please accept this letter as my resignation and let go of my duties. Please confirm receipt of this letter and go through the necessary procedures at the Registrar of Companies’ office.

Thanking You, 

Yours Faithfully 

Name of Director

DIN: ————-

Effective Date of Director’s Resignation

The most recent of the following two dates shall be used as the resignation’s effective date:

The date the notice is delivered to the company, or

The date the director specifies in the notice.

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