Resignation Of Directors as per companies act procedure

0
68
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
1Resignation when becomes effective As per the articles provisions
ImmediatelyArticles doesnot contain any provision for acceptace of resignation
Where articles allow directors to resign anytime
2On acceptanceWhere articles require acceptance
Resignation states that it is effective from the date of acceptance
Director tendered resignation is a MD or WTD
3Withdrawal of resignationResignation once made cannot be withdrawn
ExceptionResignation 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
4Resignation of WTD or MDResignation takes effect only on the acceptance of the same. Untill then he continue as director
5Verbal resignationIf the articles is silent, verbal resignation is valid provided the intention to resign is clear
ExceptionEven the articles require written resignation, verbal resignation is valid provided the if the same in made in GM and the GM accept the same
6Other pointsResignation to be submitted to board or to the shareholders
Resignation copy neednot be filed with ROC