Resignation of Director
Quick Answer
Resignation of Director India is a formal process under the Companies Act, 2013, by which a director of a company steps down from their position. This procedure is essential for business changes such as restructuring or personal career moves.
Resignation of Director — detailed explanation below
Governing Act — Resignation of Director India
The resignation of a director in India is governed by the Companies Act, 2013. Specifically, Section 168 of the Act deals with resignation of director. It states that a director may resign by giving a notice in writing to the company, and the resignation takes effect from the date on which the notice is received by the company or from a later date specified in the notice. The company must then inform the ROC within 30 days.
Government Department & Website for Resignation of Director India
The Ministry of Corporate Affairs (MCA) is the government department that oversees the resignation of director India process. The official portal for filing forms is the MCA21 portal at www.mca.gov.in. All e-forms related to director resignation, such as DIR-11 and DIR-12, are filed through this portal.
Resignation of Director India Application Process
The process for resignation of director India involves the following steps:
- Resignation Letter: The director submits a written resignation to the company, specifying the date of resignation.
- Acknowledgment: The company acknowledges receipt of the resignation.
- Filing DIR-11: The director files Form DIR-11 with the ROC within 30 days of resignation, providing details of the resignation.
- Company Filing DIR-12: The company files Form DIR-12 with the ROC within 30 days of the resignation, updating the register of directors.
- Board Meeting: The company holds a board meeting to accept the resignation and update records.
The resignation takes effect from the date of receipt of notice by the company, unless a later date is specified.
Key Forms Required for Resignation of Director India
The following forms are required for resignation of director India:
- Form DIR-11: Filed by the resigning director with the ROC within 30 days of resignation. It contains details of the director and the resignation.
- Form DIR-12: Filed by the company with the ROC within 30 days of resignation. It updates the register of directors and indicates the cessation of the director.
- Form MGT-14: If the company has a board resolution accepting the resignation, this form may be required for filing the resolution with the ROC.
All forms are filed electronically on the MCA21 portal with digital signatures.
Eligibility Criteria for Resignation of Director India
Any director of a company registered under the Companies Act, 2013, can resign. There is no specific eligibility criterion other than being a current director. However, the resignation must be voluntary and not in contravention of any agreement or the company's articles of association. The director must also ensure that all statutory dues and liabilities are settled before resignation, though this is not a legal bar.
Timeline for Resignation of Director India
The resignation of director India process has specific statutory timelines:
- Resignation Notice: The director must give notice in writing to the company.
- Filing DIR-11: The director must file Form DIR-11 with the ROC within 30 days of the resignation.
- Filing DIR-12: The company must file Form DIR-12 with the ROC within 30 days of the resignation.
- Board Meeting: The company should hold a board meeting within a reasonable time to accept the resignation.
No reported decision was found on this point.
Fees for Resignation of Director India
The government-prescribed fees for filing forms related to resignation of director India are as follows:
| Form | Fee (INR) |
|---|---|
| DIR-11 | 50 |
| DIR-12 | 50 |
| MGT-14 (if applicable) | 50 |
Note: Additional fees may apply for late filing. These fees are subject to change by the MCA.
Frequently Asked Questions
What is the process for resignation of director India?
The process involves the director submitting a written resignation to the company, filing Form DIR-11 with the ROC within 30 days, and the company filing Form DIR-12 within 30 days. The resignation takes effect from the date of receipt of notice by the company.
What forms are required for resignation of director India?
The key forms are Form DIR-11 (filed by the director) and Form DIR-12 (filed by the company). Form MGT-14 may also be required if a board resolution is passed.
Is there a fee for resignation of director India?
Yes, the government fee for filing Form DIR-11 and DIR-12 is INR 50 each. Additional late fees may apply if filed after the 30-day deadline.
Can a director resign without company consent for resignation of director India?
Yes, a director can resign unilaterally by giving written notice to the company. The resignation takes effect from the date of receipt of notice, regardless of company consent.
What happens after resignation of director India?
After resignation, the director must file Form DIR-11 with the ROC, and the company must file Form DIR-12. The director's name is removed from the register of directors, and the company updates its records.
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