RESIGNATION OF DIRECTOR

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2010 How does a director resign from the board in a Pvt. Ltd., firm if the Board fails to accepts his resignation ?

CA Sanat Pyne

CA Sanat Pyne (Expert)
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05 August 2010 There is no provisions in the Companies Act, relating to the resignation of his office by a director of a company. If there is any provision in the articles of the company giving the right to a direction to resign at any time, the resignation will take affect without any need for its acceptance by the Board. Where a director is elected or has contracted to act for a fix period, his resignation before the expiration of the period may make him liable for damages, unless the articles permits such resignation. In the absence of a provision in respect of resignation under the Act or under the articles of the company, the resignation tendered by a director unequivocally in writing shall take effect from the time when such resignation is tendered. It is advisable that the resignation should be in writing and also indicate the time when it is to take effect. The Directors cannot refuse the resignation of a co-director unless such a provision is there in the Articles of Association of Company.