Why it is important for a Resigning Director to File DIR-11

Director may resign from his office by giving a notice in writing to the company and he is also required to forward a copy of his resignation along with detailed reasons for the resignation to the Registrar within thirty days of resignation in eForm DIR-11.

The resignation of a director shall take effect from the date on which the notice is received by the company or the date, if any, specified by the director in the notice, whichever is later.

eForm DIR-11 is required to be filed pursuant to Section 168 (1) of the Companies Act, 2013 and Rule 16 of Companies (Appointment and Qualification of Directors) Rules, 2014 which are reproduced for your reference.

Why it is important for a Resigning Director to File DIR-11

• Where there are management disputes, in such companies, the directors still have an option to file DIR 11 mainly to safeguard their interests.
• Where the company has not taken any action even after the receipt of the director’s resignation, filing form Dir-11 will save the director any future actions taken against him for the misfeasance of the board of the company.
• In case of insolvent companies , if form Dir-11 is not filed by a director , such directors personal assets may be attached under IBC 2016.

Mandatory Attachments with DIR-11:

The following attachments are mandatory :

• Notice of resignation filed with the company
• Proof of dispatch
• Acknowledgement received from company, if confirmation has been received from the company.

When a director files eForm DIR-11 for intimating about his resignation before the company files eForm DIR-12, an email will be sent to the company for filing the eForm DIR-12 and the status of the Director in the company will be changed to ‘Resigned’ against the selected designation. Once the company files the relevant eForm DIR-12, the status shall be changed as per the existing system.

Director Resignation Letter Format

Date, Month, Year

To,
The Chairman / Secretary
Company Name Private Limited
City, State, Pin Code

Subject: Resignation from the Office of Director of the Company

Dear Sir/Madam,

I hereby tender my resignation from the office of the Director of the Company Name Private Limited with immediate effect (or resignation date) and request that a notice of my resignation letter be given to the Registrar of Companies and the Board of Directors be informed at their next Board Meeting.

I thank the Board of Director for having given me the opportunity and assistance to discharge my duties during my tenure as Director of the Company.

I request you to please provide me an acknowledgement for receipt of the resignation and a copy of the e-Form DIR-12 filed with the Registrar of Companies to that effect for my reference and record.

Thanking You.

Yours faithfully,
DIRECTOR NAME

Acceptance Letter by the Company [On Letter Head of Company]

To,

Dated: ______.

Mr________________________ ,

____________________,

Address,

Subject: Acknowledgement of Resignation,

Dear Sir,

This has reference to your resignation letter dated ________. In this regard, please be informed that, the Board of Directors have approved your resignation w.e.f. ________, in the duly held Board meeting dated ________.

The Board sincerely appreciated your association with the Company and the support which you have rendered during your tenure.

Thanking you,

Yours Faithfully,

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____________________PRIVATE LIMITED.
___________________.

(Director)

DIN: __________.

You May Also Refer : Filing E Form DIR-12 for Appointment/Resignation/Change in Designation of Director