Please Help: Resignation from Director-ship
Posted Date : 01-Apr-2014 , 05:41:24 pm | Posted By: NAROTTAM MAHESHWARI
Category :
Corporate Law | Answers :
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I am a director in a Pvt.Ltd Company, I want to resign from Director-ship but company is not accepting my resignation, what are the option available to me for resignation from Director-ship. |
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| Posted By : SARTHAK JAIN |
03-Apr-2014, 01:45:51 |
| Hi,
Resignation by a director takes effect immediately without any need for its acceptance. However, if articles of association of the company contains any provision which require acceptance of resignation, you can not resign until the Board accepts your resignation.
One more thing, even if articles does not provide for such restrictive clauses, you can not resign without acceptance if you are a whole time director as in that case you are also an employee of the company who can not resign at his pleasure.
Now, coming to options available supposing that you are neither a whole time director nor does the articles contain any restrictive clauses on resignation, one thing is very clear that board has no power to refuse the resignation.
Therefore, submission of resignation in writing is sufficient. In such a case, acceptance or no acceptance is not the prerogative of the company. Procedurally,company is required to file the particulars of change in directorship with ROC in Form 32 but filing of form 32 is only consequential act and it is not an act to be complied with in order to make a resignation valid.
Therefore, in nutshell, from your perspective, a written notice of resignation will suffice.
Hope this clarifies.. |
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