Form with which the board of directors of a corporation accepts the resignation of a corporate officer.
Resignation Of Director In Santa Clara
Category:
State:
Multi-State
County:
Santa Clara
Control #:
US-0005-CR
Format:
Word;
Rich Text
Instant download
Description
Form popularity
FAQ
Even after stepping down, a resigned director remains accountable for any offences committed during their term. A director can step down from their position by submitting a written resignation to the company. Upon receiving this resignation, the Board is required to acknowledge it formally.
What this means is that, subject to the company's articles of association, a sole director can resign leaving the company without any directors, and can do so without breaching their fiduciaries duties.
The appointment of new directors may be carried out by the members or by the remaining directors. A company that has no directors can be struck off. This would have serious implications for the building, as there would be no management, and it could be hard to sell any flats in the building.
Removing a non-executive director requires compliance with the company's articles of association or using an ordinary resolution. Voluntary resignation by notifying the company and co-directors is a common method of director removal.
If you are the sole director of a company with other shareholders, you should inform the shareholders of your wish to resign so they can start the process of finding a replacement. Alternatively, if you are the only director and shareholder, rather than resigning, you could sell the company as a going concern.
As per sec168 of Companies Act, 2013 a director may resign from company by giving notice in writing to company and board on receipt of notice, company intimate to ROC within 30 days of receipt of notice. Director may also intimate to ROC (forward copy of resignation) along with reason for resignation.
Directors have obligations under company law. These include acting in the best interests of the company, its employees, and its creditors, especially when the company is facing financial difficulties. Ignoring these responsibilities and simply walking away without addressing the debts can lead to legal consequences.
