Removal of Director Online Procedure from a Company
An individual responsible for the administration of a company can resign from the position by submitting a resignation letter in writing and serving the notice period. The procedure can be done online within 30 days of submitting the notice.
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OVERVIEW
What is the Resignation of a Director from a Company?
Generally, the appointment of directors ensures that a company has a leadership face. They are responsible for the company's success and may face consequences if the company encounters a financial crisis. However, unavoidable circumstances may arise that lead someone to resign from their position.
A director resignation letter is a formal statement that communicates the individual’s intent to step down from their role as a director of the company. The letter typically explains the reason for resignation and specifies the final working day. The individual may also need to serve a notice period to give the company time to find a replacement.
The director should submit the resignation letter to the company’s board of directors as well as the Registrar of Companies (RoC).
Process
Procedure for Resignation of Director & Related Compliance
As per Section 168(1) of the Companies Act, a director wishing to resign must submit a resignation notice to the Registrar within 30 days of resignation, using Form DIR-11 along with the specified fee, as outlined in the Companies (Registration Offices and Fees) Rules, 2014.
The resignation process involves certain obligations from both the director and the company. Below is a step-by-step guide to the director resignation procedure and related compliance requirements:
Step 1: Submitting the Notice
The director must provide a written resignation notice to the company and its Board of Directors. The board will acknowledge the resignation and the resignation notice becomes effective once the final date is mentioned in the notice.
Step 2: Providing Necessary Information
As part of the director resignation process, our legal team will require the following details:
|
Field Name |
Instruction |
|
CIN |
The Company Identification Number (CIN). If you don’t know it, we can assist in finding it. |
|
ID Proof |
Director’s ID proof, company’s official email ID, registered office address, and notice of declaration. |
|
DIN |
Director Identification Number (DIN) approved by the Ministry of Corporate Affairs. |
|
Date of Appointment |
The exact date when the director was appointed to the company. |
|
Resignation Filing Date |
The date when the resignation becomes effective. |
|
Reason for Resigning |
The specific reason for the director’s resignation. |
|
DSC |
A Digital Signature Certificate (DSC) will be required for submission. |
Step 3: Sending Required Documents
To complete the director resignation compliance, submit the following documents to our team:
- Resignation notice filed with the company.
- Proof of dispatch of the notice.
- Acknowledgement confirming the company’s receipt of the resignation.
Step 4: Filing the Resignation with RoC
We will file the DIR-11 form with the Registrar of Companies (RoC) on your behalf, indicating your intent to resign from the position of director.
Step 5: Modifications or Changes
If you wish to make any modifications to the form, let us know before the final submission, and we’ll update the details accordingly.
Step 6: Collecting the SRN
Once the eForm DIR-11 is successfully submitted, we will provide you with the Service Request Number (SRN). This SRN can be used for future reference with the Ministry of Corporate Affairs (MCA).
Step 7: Saving the Payment Receipt
As the resignation process involves an online fee payment, we will ensure to save your receipt, which contains details of the paid fee for the resignation of director procedure.
Step 8: Final Acknowledgement
Once the process is completed, we will save and send you the email confirmation of the director resignation under the Companies Act 2013.
Why Choose JustStart?
Why Choose JustStart for Resignation of a Director from a Company?
JustStart is India’s largest platform of CAs, professional Chartered Accountants, Company Secretaries, management professionals, and company directors, with years of expertise and experience backing us.
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Locations
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FAQs
LET'S CLEAR ALL THE DOUBTS!
Any company director looking to step down from their position is required to fill out Form DIR-11 and send it to the Registrar of Companies (RoC) within 30 days of resignation along with a copy of a Board Resolution and a Resignation letter.
The notice of resignation in eForm DIR-11 of Section 168 (1) of the Companies Act, 2013 is a form of intimation sent to the Registrar stating the intention to resign from the said position.
Yes. A director can resign at anytime from the office by completing the formalities in writing to the company’s Board of Directors. They can send an email as a valid mode of communication as well.
Yes. There are rules and regulations consolidated by the Indian government that must be completed by the incumbent of a post and sent to the competent authority.
- A resignation has to be free of any conditions.
- A resignation is accepted if proper arrangements for an alternative to the position of importance have been made.
Well, the applicable fee depends on the nominal share capital of a company. For example, any company with a share capital of less than 1 lakh usually pays around Rs. 300 as ROC Fees, whereas the charges increase by Rs. 100 if your company’s share capital lies between Rs. 1 lakh and Rs. 4,99,999. Plus, some companies have to pay additional fees if they are submitting the resignation after a period of 30 days of giving the resignation notice.
Upon receiving a director’s resignation, the company’s board organizes a meeting where the board members take note of the resignation and files an application to the RoC in form DIR-12 indicating the same. After updating the registrar, the board may select an alternative director.
Although the director is discharged of any liabilities and responsibilities after resigning from a company, as per rules laid down by the MCA, a director may be held responsible for the wrongs done during the tenure of that particular director.
JustStart guarantees you the best affordable package detailed in the resignation of the director by covering:
- Drafting a resolution for the resignation of a director from the company
- eForm DIR-11 submission
- Drafting of a resignation letter
