Recall of Director's resignation, Corporate Laws / SEBI / LLP

[Murari Agrawal]

Dear Experts,

Whether once a director who submits his resignation may withdraw the same before the resignation is accepted by the Board of Directors.

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

In my view if a Director gives his resignation in writing, the resignation date will be effective from the date of resignation. The Company is not require to accept the resignation of the Director. The Board will take note of the resignation of the Director. The resigned Director may withdraw his resignation before the Board takes note of his resignation.

[Mahir S]

Agrawal ji.

The resignation becomes effective on the date it is received by the Company or the date mentioned in the resignation letter, whichever is later.

Hence, it can be safely be concluded that since the resignation becomes effective immediately, hence the director concerned cannot withdraw his resignation, without the consent of the Company.

[Mahir S]

Further, Director's position is of utmost importance and carries lots of responsibilities. Also most of the company's decision are directly/indirectly related to decisions taken by Director/s.

At times, the purchase/sales and company future is also effected due to sudden Resignation decision of a Director.

Hence, director should himself take utmost care before taking such decisions pertaining to resignation.

[Mahir S]

If a Director himself is not able to decide about his resignation, how can he be trusted to take positive decisions pertaining to Company.