Resignation of director
📚 Law Minded summary
A director resigns by giving written notice to the company, and the resignation takes effect from the date the company receives it or a later date stated in it.
The Board takes note, the company tells the Registrar, and the resignation appears in the next Board's report. The director may also send a copy with reasons to the Registrar themselves.
Resigning does not wipe the slate: a director stays liable for offences committed while in office.
(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 gen eral meeting by the company: Provided that a 3[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 resign ation 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.
All sections in Chapter XI — Appointment and Qualifications of Directors