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Who is the director?

A director of a Company is a person who is appointed to a limited Company that looks after the day-to-day business activities and finances of the Company. He is selected from a group of managers who leads or supervises a particular area of a Company. The comPANies which use this term of ‘director’, in general, have many directors who hold different responsibilities and are spread throughout different business roles.


He ensures all the statutory filing such that the obligations are met. A director has a huge responsibility as his decisions would help in deciding the benefit of the Company as a whole. Thus it is important for a director to be honest and act lawfully and wisely. 


Resignation of the Director

A person who is a director in the Company can resign from his post and the Company by giving a notice in writing to the Company. The director’s resignation is effective from the date when the Company received the application or the date which has been specified by the director in the notice, whichever is later.


Guidelines of Resignation which have to be kept in mind

These are the various points for the resignation of the Director, which one must know of. 


Mode of resignation

A director cannot give the resignation in the oral format. He has to give his resignation in the form of writing, either in an e-mail or a letter.


Is the approval of the Board of Directors required?

The Board of Directors is then required to take note of the resignation in the meeting of the Board of Directors. They are not required to approve of anything. The resolution is passed by the Board of Directors and the minutes of the meeting of them have to be drafted.


Intimation to the Registrar of ComPANies

Within 30 days of the resignation of the director, the Company shall intimate the Registrar in Form DIR-12. 


Uploading of information on the website

The Company then has to post the information w.r.t. The resignation of the director on its website, if any. 


Reporting in the Board’s report 

The Board of Directors also has to put this in the report of directors following a general meeting of the Company.


Director can forward a copy of his resignation to Registrar of ComPANies

 A director who has resigned may forward a copy of his letter of resignation to the Registrar of ComPANies within 30 days of resigning. This can be done in accordance with Form DIR-11, along with prescribed fees.


Resignation of foreign director

If the Company has already filed the FORM DIR-12 along with the Registrar of ComPANies, then a foreign director who is resigning the Company has to get it approved by any other resident director of the Company or by practicing professional such as CA, CS, CWA.


Entry in Register of Directors

The director, who as resigned, has to make necessary entry in the Register of directors and key managerial personnel. 


Liability of directors after the resignation

Even after the resignation of the director, he would still be liable if there is an offense that has occurred in his tenure.


In case of resignation of all director

If all the directors resign from the Company, under section 167 of the Act, then the promoter or the Central Government can appoint the number of directors who would hold the Company until the next general meeting.

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FAQ - Frequently asked questions

Can a director withdraw his resignation?

Resignation of a director must be addressed to the Company. Letter of resignation addressed to the third party shall have no effect. Once a Director has given a notice of resignation, he cannot withdraw it except with the consent of the company properly considered by the directors

Can a director resign at any time?

A director may resign at any time by notice to the company, if there are no particular provisions which has been laid out by the company.

What is the process of resignation in the company?

The legal procedure is to ask for a resignation letter because the resignation letter documents that the employee initiated the termination and that it was not because of any disciplinary action.

Are directors responsible for company debt?

You are not liable for paying all the company’s debts personally, if you are a director or acting as a director of the company.

What is the effective date of resignation of a director?

The date on which the notice is received by the company or the date which has been specified in the notice whichever is later is taken as the effective date of the resignation of a director.

Within how many days the company need to intimate the Registrar?

Within 30 days of the date of resignation of the Registrar