resignation of director

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C.S. CHANDANI SARUPARIA (Querist)
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18 September 2010 Under Companues Act what is the effective date for resignation of Director. Is it the date at which resignation is given bt directir or date at which resignation is accepted by Board of Directors.
And while filing E- Form 32 penalty will be calculated from which date.

Ankur Garg

Ankur Garg (Expert)
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18 September 2010 Resignation of ordinary director

In case of Resignation of ordinary director
acceptance of resignation by board is not required. So the resignation is effective from the date mentioned in the resignation letter. Also use this date for the purpose of form 32.

Resignation of executive director like MD

Resignation of executive director like MD
is effective from the date on which resignation is accepted by board of directors.

Thanks

Ankur Garg

Ankur Garg (Expert)
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18 September 2010 Find below the sample board resolution for
taking note of Resignation of Director:

“RESOLVED THAT the resignation of Ms. Pallavi Mittal, Director of the Company, be and is hereby accepted with effect from the 26th day of the June, 2003 and that the Secretary of the Company be and is hereby instructed to make appropriate noting in the Register of Directors accordingly and file Form No. 32 with the Registrar of Companies.”

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 September 2010 In Dushyant D Anjaria, v. Wall Street Finance Ltd. [2001] 41 CLA, the Bombay High Court held that the resignation of a director would be effective from the date it was submitted, for the reason that that letter brings out clearly the intention of the person to resign. So far as other formalities like filling up Form 32 and sending it to the Registrar were concerned, it was for the company to comply with them in conformity with the provisions of section 303 of the Act. Where there was delay or negligence on the part of the company in intimating the registrar about the date of resignation, the director who had resigned could not be saddled with responsibility and liability for such delay.

Penalty will be calculated from the date Board meeting.