Know Your Compliance for Resignation of a Director in a Company
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Basic Facts on Resignation of a Director in a Company
A company’s Director may wish to resign, or the Board of Directors may want to remove the Director for various reasons. A company’s Director can also resign from the Board by filing a resignation letter with the company and notifying the ROC. In this section, we will look at the steps a director must take if he wishes to resign from his position as Director.
Director’s Notice Of Resignation To The Company
A Director may resign from a company after giving written notice to the company. The Board is required to notify the ROC of this notice in the form of DIR-12 within 30 days. If the Director desires, he may also use Form DIR-11 to send a copy of the resignation letter to the ROC and the reasons for the resignation.
Liability Of Director After The Resignation
Once a Director resigns and the Board accepts his resignation, he is not liable for any liabilities incurred by the company after the date of resignation acceptance. However, a Director is still liable for any offences committed while serving as the Company’s director.
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