Resignation of director
Resignation of Company Director is often happen over the life of a Company.
Resignation of Director can be caused by the following reason :
- Retirement plan
- Health problem
- New job opportunities
- Disagreement with the company management
What I need to do ?
- check is that any signed contract example some of the company required to hold directorship for certain period
- check is that any share qualification involved ? if yes what to do with the share
- check Company ‘s Constitution which must contain provision on Director’s resignation
EXAMPLE :
“ACRA ‘s constitution A76(g) subject to section 145 of the Act, resigns his or her office by notice in writing to the Company “
What Company need to do upon received resignation notice ?
- prepare resolution for the board to note the resignation
- check is the resignation against the Company ‘s constitution example if the outgoing director is the only local residential director then replacement is needed
- resignation notice must be file with ACRA within 14 days from the effective date
- update the statutory register director book
- change bank authorised signature if he is the authorised personal
- check number of director after the resignation of director
EXAMPLE :
“ACRA’s constitution A86 : unless otherwise determined by the Directors, 2 directors shall constitute a quorum necessary for the transaction of the business of the directors except that where the company has only 1 director, that sole director shall constitute quorum”
Additional administration
- Is the outgoing director hold any company shares ? if yes, what is the arrangement ?
- check is there any loan amount due to or due from the resigned director
- is that any signed contract to bond the director from joining competitor with same field