Resignation of director when there are interested directors

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Hi everybody,

In a private limited company, all directors are related to each other as they are in the same family

A director wants to resign. What happens to the quorum for the resolution? Everybody is a interested director.

1) Should the write up for resolution be something like this :

Mr. _____ (DIN : _________), has resigned from the office of Director of the company, citing health reasons, with effect from __/__/ 2018

Further, all the directors are related to Mr. _____ (DIN : _________). In view of being related to the concerned director, the rest of directors are also interested in this resolution as per Sec 188(1) but are entitled to be a part of the quorum and vote on the resolution as per the MCA’s Exemption Notification dated 5th June, 2015 for private companies

The chairman then placed the Letter of Resignation received from Mr. _______ (DIN: _____) in front of the Board.

************************

2) Can someone write the resolutions for this situation

Regards,

Geetha

 

Replies (2)
There is no need to refer to section 188. Simply draft the resolution stating his or her resignation is hereby accepted

Thanks Vatsla Ji for this simple solution.

Regards,

Geetha

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