A is a shareholder,director and also bank authorised signatory of XYZ Pvt. Ltd. Now due to some reason A want to take retirement as a director and to re-join as a sales executive & also as the authroised signatory in bank.
I want to know the full procedure.
Does this create any violation of law?
There is no violation of law, simply said Director needs to resign from the Directorship by tendering a resignation to the Board of Directors of the Company. ASAP he resigns file F-32 for the cessation from Directorship and redesignate him whatever designation he/management want (it your internal HR matter), intimate to bank about his resignation from Directorship, new designation and his continuance as authorized signatory. If he is relative of any other Director then provision of Sec.-314 get attracted and comply that accordingly.
Regards,
CAclubindia
