The director at his discretion may resign from directorship on reasonable ground matters by giving notice. The resignation of a director shall take effect from the date on which the notice is received by the company or the date, if any, specified by the director in the notice, whichever is later. (Section 168 of the Companies Act, 2013)
Section 168 of Companies Act, 2013 discusses the terms and conditions related to the resignation of a director.
Compliance by director
- The notice should be given to the company stating the resignation along with the reasons.
- Form DIR-11 should be filed with ROC.
- Documents required for filing DIR – 11
Notice of resignation
Proof of dispatch – a. Acknowledgment/ Receipt from the respective courier, b. Notice of resignation (if given by hand directly)
- Acknowledgment of receipt by the company
Compliance by Company
- On receipt of notice of resignation held a board meeting for such director resignation matter
- Pass a board resolution stating the acceptance or rejection of notice of resignation.
- File Form DIR-12 with ROC.
- Documents required for filing DIR – 12
- Notice of resignation
- Evidence of cessation – Board Resolution accepting the resignation