28 November 2012
Can the Board of Directors of the Private Limited have the power refuse the resignation of Managing Director on the ground that, the resignation will not be accepted till the completion of asssigned work ?
Please check what is your article permit for acceptance of resignation of Managing Director. If the article has some restriction on acceptance of resignation then you can impose such restriction, otherwise not.
29 November 2012
Mode and Consequences of Resignation
I. There is no provision in the articles giving specific rights to a director to resign at any time; the resignation will take effect without any need for acceptance by the board or the company in the general meeting. In the absence of any such provision relating to the resignation in the memorandum or articles of association ,it is settled that resignation once made takes effect immediately when the intention to resign is made clear.
II. Ordinary rule as to resignation by an officer, director or Agent must be followed, namely a. Intimation by notice either to the company or the board and acceptance of the same by them. b. Any form of resignation is valid whether oral or written, and is sufficient, provided the intention to resign is clear. c.Resignation is advisable in writing provided it indicates the time when it is to take effect and serve in record of reference in case of nay controversy.
III. The net result of the above analysis is that a director, who has submitted his resignation, will be deemed to have resigned from the date of his resignation, without prejudice to his liabilities and obligations which had occurred up to that date and which he cannot evade by severing his connection with the company.
29 November 2012
First of all the resignation shall be considered effective from the date of resignation.
However, the Board may note that the resignation tendered by Mr....., as placed before the Board, be and is hereby approved and Mr ...... shall be releaved w.e.f. ........
Mr........ be and is hereby instructed / adviced / requested to complete his all the pending works and surrender the charge before ...........
In the above case the resignation tendered on say today i.e. 29/11/2012 shll be effective w.e.f. 31/12/2012.
CAclubindia
