The resignation of a director is the same as resigning from a job or a post. It is an individual decision or a choice made by the person intending to quit. Hence, the resignation of a director involves the director communicating the same to the management team within the company. This, in turn, will entail the company to discharge him/her of his duties and responsibilities. Another aspect of the resignation of the director involves providing a copy of the resignation letter to the(ROC) registrar of companies, by the director within an allotted period of time.
The management does not have to necessarily accept the resignation letter to be effective. In fact, it is considered effective from the date of submitting the resignation, given that the same has been filed with the Registrar of Companies (ROC), as per the allotted time.
As per the resignation of director companies act 2013, section 168 (1) specifies that a director has to submit a resignation letter or notice to the company. However, the director has a few more responsibilities to execute the resignation of director Companies Act 2013. As per rule 16 of Companies Rule, 2014 (Appointment and Qualification of directors), the resignation letter or notice and reasons for the resignation has to be shared with the Registrar of Companies (ROC) using Form DIR11, within 30 days of the date of resignation.
Another important aspect of the resignation of the director companies act 2013, section 168 (2) specifies that the resignation of the director will take place from the date of submitting the notice or the resignation date mentioned in the note.
When the form DIR11 is submitted with the ROC, the date of resignation also has to be mentioned in the form.
A director’s resignation, under section 168, involves providing a resignation letter or notice to company management or the board. The board, in turn, will notify the Registrar of Companies (ROC) within the prescribed time. The director also has to file a copy of the resignation letter or notice with the Registrar of Companies (ROC), along with the reasons behind the resignation in form DIR11.
A director’s resignation, under section 168, is effective from the date of submission of resignation letter or notice, or the date mentioned in the notice (whichever is later). This will be as per the condition that the director will be responsible for all decisions and actions made at the time of his/her tenure.
The resignation of a director or managing director, companies act 2013 states that the company has certain duties and responsibilities to fulfil after.
As per rule 16 of Companies Rule, 2014 (Appointment and Qualification of directors), the resignation letter or notice and reasons for the resignation has to be shared with the Registrar of Companies (ROC) using Form DIR11, within 30 days of the date of resignation
Can the company or management reject the resignation of “Director?”
As per section 168 of Companies act 2013, the management does not have any right to reject the resignation given by a director.
What is the effective date of resignation in case of non-acceptance of resignation notice, and non-filing of form DIR11, by the company?
In case of non-acceptance of the resignation of director by the company, or if form DIR11 has not been filed by the company with Registrar of Companies (ROC), then the effective date of resignation will be the date on which the director submits the same with the board of directors
Who manages the company, if all its directors resign or vacate their offices?
As per section 168(3) of Companies Act 2013, if all the directors resign, or if they vacate their offices (as per section 167), the appointed company promoter will take charge. If there is no promoter, the central government will arrange for temporary directors to manage the company, until new directors are appointed as per the company general meeting.
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