Resignation of Director from the Board of the Directors of the Company

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

  • Serve a Notice of resignation to the Company
  • Request the company to provide acknowledgement of the resignation
  • Filing of DIR-11 to the ROC

Company’s Responsibilities

  • Held Board Meeting to approve resignation
  • Confirm the minimum number of director maintained after proposed resignation
  • Intimate acceptance of resignation to the retiring director
  • File DIR-12 to intimate the ROC.

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Resignation of Director in India

An Overview - Resignation of Director

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 detailed process of Resignation of Director

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.

 Reasons for Resigning from the office of director

There are several causes for a director's departure. A director may resign in the following ways:

  • As a result of health concerns.
  • If you have any disputes with the company or any of its directors.
  • Due to changes in the company's ownership structure.
  • If desiring to relocate with a different employer
  • Due to relocation and retirement preparations.

NOTE: Resignation must be reported to the registrar within 30 days.


Documents required for Resignation of Director

Documents necessary for the director's resignation include:

  • Notice of resignation provided to the company.
  • Provided evidence that the resignation notification was sent to the company.
  • Director may provide a copy of the acknowledgement of resignation acceptance received from the company.
  • Following acceptance of a resignation, the board shall permit a departing employee to file Form DIR-12 together with a resignation letter and the resolution adopted within 30 days of the board meeting.
  • Director may also use the Board Resolution as evidence that the corporation has accepted his or her departure.



When to file the DIR-11?

Within thirty days of the resignation being submitted to the firm.

When should a board member resign?

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.

Is there any liability following resignation for a director?

Even after leaving, the departing director remains accountable for conflicts and violations committed during his term.

Can a director withdraw his or her resignation?

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.

How may a director's position be resigned?

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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