Resignation by director

Deepika,

1. if he does not want to be a shareholder, he can transfer the shares to someone else.

2. no. if he continues as a SH, he is not liable for the misappropriation by the company

3. this cannot be said.....since it depends on the facts of the case.

Ankit

Dear Ankit

Pl. explain the procedure to transfer the shares of pvt. ltd. company as I have not handled it earlier and not aware of step by step procedure.

/experts/transfer-of-shares-in-private-limited-company-337345.asp#.UH_Ss283u24

Originally posted by : ACS Deepika Chowdhary
	Dear All Pl. advise that if a person is a director in a Pvt. Ltd. and holds certain shares as well and he wants to resign as the Director from the Board then apart from intimating about his resignation to the Board and in return company filing form 32 with MCA, what other formalities are to be done if: he dont wish to continue as shareholder? he continues as shareholder, can it give rise to any liability as shareholder for any misappropriation on the part of Company/other director?? Can he be make liable for any misappropriation on company or other directors part, when he was continuing as Director and he resigned as soon as he came to know about the misappropriation. Regards

Dear Deepika ji,

Yes he may continue as shareholder of the Company. However, if he want he may transfer the shares by way of executing transfer deeds.

He shall be liable for any unlawful act during the time of his tenure as director, whether he remain as shareholder or not. However, in that is it is advisable to release the shareholding of the company, because it will also enhance the cognizance of the offence as the person will be in direct beneficiary of the company.