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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. 


About the resignation of the Foreign/Non-Resident Directors


According to the comPANies Act of 2013, it has been mentioned that a foreign person can become a director of a Company. A foreigner or an NRI is capable of being an executive or a non-executive/independent director of public or private Indian comPANies. 


A director can resign from his office by giving official notice to the organization under Section 168(1) of ComPANies act 2013. The Company has to intimate the Registrar within 30 days of the resignation in accordance with the form as prescribed. The same fact of the resignation has to be present in the Board of Directors. Moreover, this report of the same is to be laid at the general meeting of the Company in the next immediate meeting.


The resignation of the director is counted to be effective from the date on which the notice has been received by the Company. Or else, it can also be effective from the date specified by the director in the notice, whichever is later


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FAQ - Frequently asked questions

Effective date of resignation of a director

The date on which the notice is received by the company or the date specified in the notice whichever is later

Within how many days company need to intimate the Registrar?

Within 30 days of the date of resignation

Is it possible to reject the resignation of "Director" by chief managerial persons?

Under the provisions of section 168, Companies act 2013, no right has been offered to any managerial person to reject the resignation given by Directors.

What is the liability of directors during their tenure?

The Directors who have resigned shall be liable even after his resignation for the offence which took place during his tenure.

Rule 15 and 16 of the Companies Rules, 2014

According to Rule 15, the company shall inform the Registrar in Form DIR-12 and post the information on its website if any within 30 days from the date of receipt of notice of resignation from a director. The company must file DIR-12 within 30 days of receipt of notice of resignation by the director. According to Rule 16, where a director resigns from his office, within 30 days from the date of resignation, he shall forward to the Registrar a copy of his resignation with reasons for the resignation in Form DIR-11. This should accompany with the fee as recommended in the Companies Rules, 2014 (Registration Offices and Fees).