Evidence of cessation

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Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2013 Please let me know the format or evidence of cessation by director from company.

Ankur Garg

Ankur Garg (Expert)
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22 April 2013 Cessation from what?
Please elaborate your query a bit so that a proper reply can be drafted.

Thanks

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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21 July 2024 When a director ceases to be associated with a company, it's important to document this cessation properly to ensure compliance and clarity. Here’s the typical format and evidence that can be used to signify the cessation of a director from a company:

### Format or Evidence of Cessation by Director from Company:

1. **Resignation Letter**:
- A director typically submits a resignation letter to the board of directors or the company secretary. This letter should include:
- Date of resignation.
- Effective date of resignation (typically immediate or as per notice period).
- Reasons for resignation (optional but recommended for clarity).
- Signature of the resigning director.

2. **Board Resolution Accepting Resignation**:
- The board of directors should convene a meeting to accept the resignation formally. The board resolution should include:
- Details of the resignation letter received.
- Acceptance of the resignation with immediate effect or as per notice period.
- Appointing any interim director (if applicable).
- Authorizing the company secretary or another officer to file necessary forms with the Registrar of Companies.

3. **Filing with Registrar of Companies (ROC)**:
- After acceptance by the board, the company must file Form DIR-12 with the ROC within 30 days of resignation. This form includes details such as:
- Date of resignation.
- Effective date of resignation.
- Details of the new director (if appointed).
- Board resolution accepting resignation.

4. **Letter of Acknowledgment from ROC**:
- Upon filing Form DIR-12, the ROC will issue an acknowledgment of receipt. This serves as official confirmation of the cessation of the director from the company.

5. **Updating Company Records**:
- Update the company’s statutory registers and internal records to reflect the change in directorship.

### Sample Resignation Letter:

```
[Date]

To,
The Board of Directors,
[Company Name],
[Company Address].

Dear Board Members,

Subject: Resignation as Director

I hereby tender my resignation from the position of Director of [Company Name] with immediate effect. My decision to resign is due to [brief reason, if desired].

I would like to express my gratitude for the opportunity to serve on the board and contribute to the company's growth during my tenure.

Please consider this letter as formal notice of my resignation from the board, effective immediately. I will ensure a smooth transition and assist in any way necessary during this period.

Yours sincerely,

[Director's Full Name]
[Director's Signature]

```

### Board Resolution Format:

```
[Date]

RESOLVED THAT:

1. The board has considered and accepted the resignation letter dated [Date] received from [Director's Name], resigning from the position of Director of the Company with immediate effect.

2. The board expresses its appreciation for the valuable contributions made by [Director's Name] during his/her tenure as Director.

3. [Secretary's Name], the Company Secretary (or [Name], Director/Officer), is authorized to file Form DIR-12 with the Registrar of Companies to notify them of the resignation of [Director's Name].

4. Any officer of the company is authorized to do all acts, deeds, and things necessary, incidental, or conducive to giving effect to this resolution.

```

### Conclusion:

The above format and evidence (resignation letter, board resolution, and filing with ROC) should be followed meticulously to ensure compliance with corporate governance and legal requirements concerning the cessation of a director from a company. Always consult with a legal professional or corporate advisor for specific guidance tailored to your jurisdiction and company’s requirements.

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