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


“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


“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





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