what is the procedure of exit

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Aditya (Querist)
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26 July 2009 Recently, I mean we have started one private limited company. PLease help me and inform me what is the procedure by which one shareholder/Director could resign and exit from the firm. Is the process lengthy.Ineed to understand this for back-up

Rasesh

Rasesh (Expert)
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26 July 2009 A Director can resign by simply tendering his resignation to the Board of Directors. The Board has to take note of the resignation and file form no. 32 with the MCA (online filing at www.mca.gov.in) and intimate the MCA regarding the resignation of the Director.

A shareholder can exit by selling his shares to any other person interested in buying the shares. A Private Limited can put restrictions on transfer of shares. Hence, one needs to refer to the Memorandum and Articles of Association for having a final view on the same.