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Resignation of MD

NIRAJ GOEL (PROP.) (107 Points)

24 August 2011

Dear All

What is the procedure of accepting resignation in a private limited Company.

the person resigned from Both as Md as well as Director. can we simply accept the resignation in board Meeting and file Form-32 to roc.

or we need to conduct an EGM

plz reply

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9 Replies

G.L.Subhramanian (PCS) (206 Points)
Replied 24 August 2011

Hi Niraj,

For private company, board resolution is enough for resignation of MD.

Regards,

Subbu

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CS Shivi Reddy (COMPANY SECRETARY) (175 Points)
Replied 24 August 2011

Dear Niraj,

If the MD is appointed by Shareholders in the General Meeting then the power of removal also vest on them.

First go through the Articles of the Company the procedure of there appointment.

If they are appointed by the Board then the Board has the power to remove them. And if they are appinted by the Shareholders in General Meeting, then the power of removal vest on the shareholders.

Regards

Shivi

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 24 August 2011

I think for accepting resignation of MD in a pvt or public company, Board Resolution is enough.

AGM/EGM usually do not resolve to accept resignation of MD, whomsoever appoints the MD.

NIRAJ GOEL (PROP.) (107 Points)
Replied 24 August 2011

Dear Madam Shivi Reddy

first thanks for your reply, actually we are not asking for removal of Md, we are asking how his resignation will be accepted in the company

S. Satheesh Kumar (Assistant Company Secretary) (84 Points)
Replied 24 August 2011

Hi Niraj,

You can simply accept the resignation letter of MD in Board Meeting and file Form 32 with ROC.

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RG - A Helping Hand (Company Secretary) (13867 Points)
Replied 24 August 2011

Only take note in the BM by passing the following resolution would be enough....

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 29^th day of the July, 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.”

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 25 August 2011

In any kind of company the resignation can be accepted in Board Meeting and to file form 32 accordingly.

Rajesh Kumar Dang (CA) (21 Points)
Replied 25 August 2011

I think if MD submits resignation and the board do not accept the same, MD can not be held liable for acts done after his resignation.The acceptance of his resignation is merely formality.Even no provision has been found in the act itself.Membes pay please throw more light on my view.