With the assistance of KNAP Advisory, resigning from a business as a director is no longer difficult. We can assist you in fulfilling all legal requirements for resigning from a company.
Director Responsibilities
Company’s Responsibilities
Resigning as a director is equivalent to quitting a job or position. It is a personal option or decision made by the departing individual. Consequently, when a director resigns, he or she must inform the company's management team. This requires the corporation to release him of his obligations and duties. The director must also send a copy of the resignation letter to the registrar of companies (ROC) within a predetermined timeframe.
It is not necessary for management to accept the resignation letter for it to take effect. Indeed, it is effective as of the date of submission, providing the resignation is filed with the Registrar of Companies (ROC) within the allotted time frame
The Companies Act 2013 stipulates that when a director or managing director resigns, the company must carry out the following obligations and responsibilities:
1. The first stage is for the company to pass a board resolution approving the notice or letter of resignation and authorising the employee to submit form DIR12 with the reason for leaving, as stated in section 168(1) of the Companies Act, 2013.
2. In accordance with Rule 16 of the Companies Rule, 2014 (Appointment and Qualification of Directors), the resignation letter or notice of resignation must be filed with the Registrar of Companies (ROC) using Form DIR12 within 30 days of the date of resignation.
3. In addition to completing eForm DIR12, the business must provide a notice or resignation letter.
There are several causes for a director's departure. A director may resign in the following ways:
NOTE: Resignation must be reported to the registrar within 30 days.
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Within thirty days of the resignation being submitted to the firm.
A director's resignation must be for a justifiable reason, such as health problems, retirement, an accident, or the desire to relocate to another organisation.
Even after leaving, the departing director remains accountable for conflicts and violations committed during his term.
The director must submit a resignation letter to the company in order to quit. Once the resignation has been accepted, it cannot be withdrawn without the company's approval and after careful review by the board of directors and shareholders.
In accordance with section 168 of the Companies Act 2013, a Director must provide written notice to the company and the Board of Directors in order to resign. Within 30 days of resignation, both the company and the director must notify the ROC using the required form.
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