how a director can resign
rajvinder singh
(Querist) 29 September 2009
This query is : Resolved
sir please tell how a director can resign from the company.he is not an active director.kindly adviose what is the procedure to resign from a company.
the reason is to avoid the criminal liability under section 138 n i act.The M D is issuing the cheques and the notices are coming to directors for insufficient funds.
in such a situation where a director is not active in the business of the company and has recieved 8 notices u/s 138 N I Act.what should be done and what should be the procedure to resign from a company
Raj Kumar Makkad
(Expert) 29 September 2009
If the director is not active and has not issued any cheque in that situation he is not bother and need not worry as there are no circumstances forcing him to resign. The MD who issued cheques despite of insufficient funds is only responsible. Merely receipt of some notices under 138 NI Act doesn't mean that director is also legally liable for the consequences of 138 NI Act. I think he is not required to resign. Even then if he wants to leave the company, he can simply resign by tendering his resignation mentioning therein his personal reasons rather mentioning any detail therein.
joyce
(Expert) 29 September 2009
Board of directors do have the memornadum of association and articles of assocation, there are certain by-laws specified for the companies smooth running managements, so one has to go thru the by-laws as well as agreements, deeds if any done between the board of directors, then only clarification can be given to ur querry.
if no such releted above mentioned matters ; then resignation letter during the course of directors meeting or body meeting would be helpful.
Sachin Bhatia
(Expert) 06 October 2009
I dont think he required to resign. If the director is not active and has not issued any cheque in that situation he is not bother and need not worry as there are no circumstances forcing him to resign.
