| RESIGNATION OF DIRECTORS | ||
| Highlights | ||
| Resignation when becomes effective | ||
| Whether acceptance of resignation required | ||
| Withdrawal of resignation | ||
| Resignation of WTD or MD | ||
| Verbal resignation | ||
| Other points | ||
| 1 | Resignation when becomes effective | As per the articles provisions |
| Immediately | Articles doesnot contain any provision for acceptace of resignation | |
| Where articles allow directors to resign anytime | ||
| 2 | On acceptance | Where articles require acceptance |
| Resignation states that it is effective from the date of acceptance | ||
| Director tendered resignation is a MD or WTD | ||
| 3 | Withdrawal of resignation | Resignation once made cannot be withdrawn |
| Exception | Resignation requires acceptance and the withdrawal is made before the same is accepted | |
| Withdrawal is made with the consent of board or shareholders or in accordance with the articles | ||
| 4 | Resignation of WTD or MD | Resignation takes effect only on the acceptance of the same. Untill then he continue as director |
| 5 | Verbal resignation | If the articles is silent, verbal resignation is valid provided the intention to resign is clear |
| Exception | Even the articles require written resignation, verbal resignation is valid provided the if the same in made in GM and the GM accept the same | |
| 6 | Other points | Resignation to be submitted to board or to the shareholders |
| Resignation copy neednot be filed with ROC | ||
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