A director can resign from a company by submitting a resignation letter to the board of directors. The resignation becomes effective from the date specified in the letter or from the date it is accepted by the board, whichever is later. The director must submit Form DIR-11 to the company, and the company must file Form DIR-12 with the Registrar of Companies (RoC) within 30 days of the director's resignation.
What is the Process of Director Resignation?
The process of director resignation involves several steps, including submitting a resignation letter, board acceptance, and filing forms with the RoC. The following are the steps involved in the process:
- The director submits a resignation letter to the company, specifying the effective date of resignation.
- The board of directors accepts the resignation and notes the effective date.
- The director submits Form DIR-11 to the company, which includes details of the resignation.
- The company files Form DIR-12 with the RoC, which includes details of the resignation and the board's acceptance.
What are the Forms and Documents Required?
The following forms and documents are required for director resignation:
| Form | Purpose | Filed by |
|---|---|---|
| DIR-11 | Notice of resignation of director | Director |
| DIR-12 | Particulars of appointment of directors and the key managerial personnel | Company |
What are the Key Takeaways?
The director's resignation is effective from the date specified in the resignation letter or from the date it is accepted by the board, whichever is later. It is essential to file Form DIR-11 and Form DIR-12 with the RoC within the specified timeframe to avoid any penalties.
Frequently Asked Questions
Can a director resign without a board meeting?
Yes, a director can resign without a board meeting by submitting a resignation letter to the company. However, the board must note the resignation and file Form DIR-12 with the RoC.
What is the effective date of director resignation?
The effective date of director resignation is the date specified in the resignation letter or the date it is accepted by the board, whichever is later.
What are the consequences of not filing Form DIR-11 and Form DIR-12?
Failure to file Form DIR-11 and Form DIR-12 within the specified timeframe can result in penalties and fines for the company and the director.
The bottom line
Director resignation involves submitting a resignation letter, filing Form DIR-11, and the company filing Form DIR-12 with the RoC. It is essential to follow the process and file the necessary forms within the specified timeframe to avoid any penalties and ensure compliance with company law.
This is general information, not professional advice — confirm the current position for your specific case before acting.
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