Director Resignation Process in Company

Directors who intend to resign

The Director intending to resign shall send a notice with the reasons for resignation in writing to the company. The Director shall within 30 days from his resignation, forward to the registrar a copy of his resignation along with reasons for resignation with reasons provided therein in Form DIR-11. The responsibility of filing DIR-11 by the resigning director has been made optional by the Ministry of Corporate Affairs.

In case of a non-resident director, he/she can authorize specified persons to execute and file DIR-11. A non-resident director may authorize a Company Secretary in practice or any other Resident director of the company to sign Form DIR-11 and file the form.

Compliance to be followed by Companies in case of Director's resignation

The company shall within 30 days from the date of receipt of notice of resignation from a director, intimate the registrar in form DIR-12 and post the information on its website, if any, as provided in Rule 15 of the companies (Appointment and Qualification of Directors) Rules, 2014. The company is required to attach Notice of resignation and Evidence of cessation as supporting document with eform DIR-12. The board shall place the facts of such resignation by the director in the Report of Directors laid in immediately following annual general meeting by the company.

Liability of the resigning director

The director who has resigned shall be liable even after his resignation for the offenses which occurred during his tenure.