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Resignation as director of a pvt ltd co

Others 1194 views 1 replies

Raina

Others

24 Points Joined October 2012

I am a director in a private limited company. The other director is my husband. He is closing down the business but from my limited understanding of these matters, he says that even if you close the business the company cannot be just shut down as it is a pvt ltd co. Due to domestic discord and not wanting to be involved anymore (i was hardly involved or informed anyway) i wish to resign as director. he does not tell me what my 50% holding is worth. It may be worth nothing. I may also be liable if there are any liabilities. What should I do? Should I insist on obtaining copies of all the documents and show them to a lawyer to understand my situation? He may not be willing to give me but surely as a director/shareholder I have that right? Should I resign just by giving a simple letter or resignation?

Some basic advise would be welcome , if only to point me in the right direction,

Thank you in anticipation

Replies (1)

Prateek Agarwal

Sr. Executive - Finance & Accounts

1732 Points Joined February 2011

You can resign by giving the letter of resignation.

But you must understand that there must be 2 or more directors in a pvt ltd company. If that condition is not fulfilled, the company has to get itself wound up and as a shareholder your responsibility to pay off the creditors may arise. You may be equally liable for all the debts of the company. As a director, you dont get anything but as a shareholder you have a share of profit/loss of the company Whatever assets or money is left after paying off the liabilities, you may have a share of that sum according to your shareholding volume.