Online Resignation letter of director, format [2020] - Onfling
Alteration in Company Docs

Resignation of Director

Overview

According to the provisions of the Company Act, 2013 it is mandatory for every company to have a minimum number of directors as specified. But if there is removal of any director or resignation given by any director, the company needs to notify and file it with the Ministry of Corporate Affairs.

There can be three situations where a company needs to file the removal of director with MCA

Resignation given by Director

When resignation is given by the director, in such case the Board of Directors decides whether to accept or decline the resignation. If resignation is accepted then Board passes resolution and files the removal of director with the MCA.

Director removed by the Company

In this case a meeting is organised with the purpose of passing ordinary resolution in favour of removing director. Also the concerned director is given opportunity to be heard before passing the resolution.

Director doesn’t attend Board meetings

When the director of the company abstain himself from attending three consecutive board meetings which means director is absent for 12 months even after receiving the notice. In such cases, the company files removal of director with MCA.

Process of Removal of Director

It is necessary to be compliant with the MCA guidelines for removal of director.

Right to be Heard

First step is giving opportunity to directors of being heard. The process of removal cannot be initiated without giving the proper opportunity to director who is to be removed.

To Issue notice

Second step is to issue notice. This notice is processed by shareholders holding a minimum voting power of 1% or who holds shares on which an aggregate sum of not more than Rs 5,00,000 has been paid up on the date of notice. Such a notice, known as special notice must be signed by all the members. The special notice must be delivered to the company at-least 14 days prior to the date of meeting, at which the resolution will be passed.

Notice to members

A copy of the notice must be sent to the director concerned before 7 days of the meeting. And notice must be mandatorily published on the company’s website.

Representation in writing

The concerned director can make a representation in writing to the company against the notice of removal. The concerned director is entitled to make a plea to the company that the representation must be sent to all the members.

Appeal to the Tribunal

After completing above steps, the organization or any aggrieved person after sending out representation can make an application to the Tribunal, requesting for nullification of the process.

FAQS

The status will be updated on the same day on the portal of MCA.
After receiving the resignation letter the chairman of the Board must send letter to the resigning director that his/her resignation letter has been received. After that the letter is placed before the Board and the fact would be recorded in the minutes of the meeting.
After the resignation of director, he cannot be held liable for the losses incurred by the company after the date f acceptance of resignation.
Removal of director is simple procedure and takes one day for the complete process.

Pricing Plan

BASIC ₹3500
One Time

  • Resignation of a Director from the Board of Directors of a Company with resigning Directors' consent
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SILVER ₹4500
One Time

  • Removal of a Director from the Board of Directors of a Company without resigning Directors consent
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Get Plan

GOLD ₹7500
One Time

  • Removal of a Director from the Board of Directors of a Company without resigning Directors consent by serving notice
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