Joining Of Director with another Pvt Co.

Director need not resign in existing company merely because he/she joined another company. However if he wants to resign, he can write a resignation letter to company. No provisions in this regard in the act. Articles may provide for any rules. No format available, just write the letter as to you want to resign, in case of absence of any provision in AOA, resignation takes effect the moment letter reaches the company.

Dear Sunny,

I need clarification whether that particular Director must have to inform the first co (not about resignation) n if yes within how many days.

Hello,

The intimation should be given to the first company within a reasonable time. (Probably in the subsequent Board Meeting) Yes. It is mandatory.

Further asper section 299 of the Act every director should give such declaration/ a general noice to the company where he is a director in the last month of the financial year. (in form 24AA)

Section 299(4) contains a penal clause wich imposes a penalty of50,000 (FOR NON DISCLOSURE OF INTEREST and not NON DISCLOSURE OF DIRECTORSHIPS IN OTHER COMPANY )

For your further reference please find the attached form24AA for declaration of interest.

Other members' views are solicited. 

Thanks and Regards

VINAY B L

 

Dear All,

I am slightly finding incorrect, the advice given by Vinal BL.

He is correct regarding section 299, but the further important compliance is as under.

U/s section 305, it is the duty of every Director to inform all the companies in which he is holding directorship about his appointment and relinquishment  of any directorship in any company, within 20 days from the date of event.

Therefore, the time limit is 20 days from the date of Appointment or relinquishement. 

Thanks & Regards,

Kaustubh