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Resignation once made cannot be withdrawn |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