Home > Online Procedure for Removal of Director
An individual responsible for the administration of a company can resign from the position by submitting a resignation letter in writing and serving the notice period. The procedure can be done online within 30 days of submitting the notice.
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Generally, the appointment of directors ensures that a company has a leading figure responsible for its successful functioning. However, there may be unavoidable circumstances that lead someone to resign from their designation.
A director resignation letter is a formal statement of intent to step down from the position of director within a company. This letter indicates the reason for resigning and specifies the final day of service. Typically, the resigning individual is required to serve a notice period to allow the company time to find a replacement.
The director of the company also needs to send the resignation letter to the company’s board of directors and the Registrar of Companies, RoC.
Section 168(1) of the Companies Act states that “a director who wants to resign from his office shall, within a period of thirty days from the date of resignation, forward to the Registrar a copy of his resignation along with reasons for the resignation in Form DIR-11 and the fee as provided in the Companies (Registration Offices and Fees) Rules, 2014.”
There are obligations on the part of the director and the company, which both parties must fulfill to complete the resignation and removal of the director process. Let’s examine the resignation of the director online process in detail:
Step 1: Submitting Notice
The individual must provide written notice to the company and the Board of Directors. The board will acknowledge the reason for resignation, and the director’s resignation will take effect after the final serving date mentioned in the notice.
Step 2: Providing Information
For the resignation of a director online process, our legal team may require specific information from you, including:
Step 3: Sending Attachments
As part of the procedure for resignation of a director and related compliance, you may need to send our team the following documents:
Step 4: Filing Return of Resignation with RoC
We will forward the voluntary resignation to the Registrar of Companies to indicate your intent to resign from the position.
Step 5: Making Changes
If there are any modifications or changes you would like to make in the form, you can inform us, and we will make the necessary adjustments before the final submission.
Step 6: Collecting SRN
Once your eForm DIR-11 is successfully submitted, we will provide you with a Service Request Number (SRN), which can be used to connect with the Ministry of Corporate Affairs (MCA) in the future.
Step 7: Saving the Receipts
Since the fee for completing the resignation of director form is paid online, we will ensure to keep a record of the certificate containing the details of the paid fee.
Step 8: Acknowledgment
Once the process is completed, we will save the email acknowledging the completion of the resignation of the director under the Companies Act 2013.
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A company director intending to resign must complete Form DIR-11 and submit it to the Registrar of Companies (RoC) within 30 days of the resignation. The submission should include a Board Resolution and a Resignation letter.
The notice of resignation in eForm DIR-11 of Section 168(1) of the Companies Act, 2013, is a formal intimation sent to the Registrar indicating the intent to resign from the said position.
Yes, a director can resign at any time from the office by completing the formalities in writing to the company’s Board of Directors. They can also use email as a valid mode of communication.
Yes, there are rules and regulations laid out by the Indian government that must be followed by the incumbent of a post and sent to the competent authority.
A resignation is generally accepted if it is unconditional. However, if proper arrangements for a suitable replacement have been made, it may be accepted with certain conditions.
The applicable fee depends on the nominal share capital of the company. For example, a company with a share capital of less than 1 lakh usually pays around Rs. 300 as ROC Fees. The charges increase by Rs. 100 if the company’s share capital is between Rs. 1 lakh and Rs. 4,99,999. Additionally, some companies may have to pay additional fees if they submit the resignation more than 30 days after giving notice.
Upon receiving a director’s resignation, the company’s board organizes a meeting to acknowledge the resignation and files an application to the RoC in Form DIR-12 indicating the same. After updating the registrar, the board may select an alternative director.
While the director is generally discharged from liabilities and responsibilities after resigning from a company, as per rules laid down by the MCA, a director may still be held responsible for any wrongdoings that occurred during their tenure.
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