Removal / Resignation of Director
Removal / Resignation of Director can be made at any time in any company. Any Removal / Resignation of Director must comply with the provisions of Companies Act 2013.
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Subject to fulfilment of minimum director requirement such as one director for one person company, two directors for a private limited company and three directors for a public limited company.
Every director has right to resign from the directorship of the company due to his own reasons or commitment elsewhere. Any director who intends to resign from the directorship shall ensure before resigning that the minimum number of director must be met for effectively running of the company.
Any director who intends to resign can give a simple resignation letter to the company mentioning the resignation date and reason of resignation.
Post submitting the resignation to the company, the company shall move to hold a board meeting by giving at-least seven clear days notice. Board meeting shall be held to decide for acceptance of resignation or not. Once the resignation is accepted in the board meeting, a proper resolution for resignation of director shall be passed. The Company shall require filing all the necessary forms within 30 days to give effect to the resignation of the director.
Removal / Resignation of Director in any company must be followed by the provisions of Companies Act 2013 and should contain proper documentation as prescribed along-with statutory e-filing required to be done in order to intimate the change in directorship of the company.
For giving effect to the removal / resignation of the director, Form DIR-11 is required to be filed by the outgoing director; it is notice of resignation of director to the registrar. Form DIR-12 is required to be filed by the company; it is particulars of change in directors of the company.
The Company shall also have option to remove the director suo-moto. In this process the company need to call a board meeting containing agenda to remove the director. Before removal / resignation of director, an opportunity of being heard must be given to such director before removal / resignation of Director. Once the board arrive at the decision of removing a director, a proper resolution for removing of director is passed. Post approval of director’s resignation in the board meeting, proper form DIR-11 and DIR-12 shall require to be filed. Any Director appointed by the Central Government or Tribunal shall not be removed by the company under suo-moto option.
Any Director who remain absent from 3 consecutive board meeting in a row comprises of 12 months shall be deemed to vacate his office and accordingly Form DIR-12 require to be filed.
Removal / Resignation of Director can also be made as per the provisions of Companies Act 2013, in case of rotation of Directors, or in any other statutory provisions. Any Director appointed by the Central Government or any other Government Body shall be entitle for removal / resignation of Director as per the bye laws of such governing body.
With the ever changing Law and regulatory requirements, we keep on track and advise the same on timely manner in order to ensure proper compliance. We at ReturnFilings.Com will understand the purpose of your resignation of director and thereafter will provide you detailed analysis mentioning the law requirement and compliances need to fulfil in order to provide resignation of directors related services economically and efficiently. We at ReturnFilings.Com will provide you details of regulatory filings in order to ensure proper smooth and timely compliances. We at ReturnFilings.Com are determinate to provide end to end solution; our motto is you concentrate on your business while we at ReturnFilings.Com will take care of all your compliances need.