13 November 2013
A private limited company floated by two directors. The MD of the company intend to resign from the company and handover to the other director. Please advise the formalities to be complied with such as resolution, application to ROC for the same Thanks Venugopal
In Case the director of the company is less than two or the no. of director fix for the quorum, then the remaining director (continuing director or directors) may act for the purpose of increasing the no. of directors to that fixed for the quorum or summoning a general meeting of the company, but no for other purpose.
Please read Regulation 75 of Table A of Schedule I of the Companies Act, 1956.
13 November 2013
A managing or whole-time director or manager cannot resign merely by giving a notice to this effect. They cannot freely resign and consider themselves relived from the respective office. Acceptance of their resignation by the company is necessary for their resignation to be effective.
Since the Act does not provide anything in this regard, Articles of the company will have to be perused. Terms and conditions of the appointment of them generally also provide conditions for resignation.
You also check your company's article in this regards.
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