When and how can a director resign?

A director may always resign their office as a director by written notice to the company. The Articles may provide for a period of notice, but rarely do so. If the company has adopted the Model Articles, without amendment, these provide for a written resignation to take effect in accordance with its terms.

Does the company need to approve a director’s resignation?

There is no requirement for the resignation of a director to be approved by the company. As a matter of practice, the resignation might be noted at the next meeting of the board.

What Companies House filing is made for a director’s resignation?

The resignation needs to be filed at Companies House (by the company) within 14 days using form TM01.

Company director resignation letter template

Name: Company Director Resignation Letter Template - PaperRock Documents
SKU: DIR004.001
Price: 15.00 GBP
Availability: InStock

This company director resignation letter template provides a clear written notice of resignation.

It includes two versions: a simple letter and a detailed version for negotiated share sale transactions. It also incorporates a waiver of claims and confirmation that no amounts are owed to the resigning director.

for a simple letter of resignation.
for a longer form of resignation for use in a negotiated share sale transaction, with a waiver of claims and amounts owed to the resigning director.

What are the key features?

alternative forms of letter – simple and longer form, addressed to the board of directors.
longer form letter includes:
- - confirmation that no amounts are owed to the resigning director by the company.
  - confirmation that the resigning director has no claims against the company and a waiver of any potential claims.
execution and delivery by the resigning director as a deed.

What else do I need to know?

When can a director resign?

A director can resign at any time by giving written notice to the company.
In most cases, company Articles of Association do not require a notice period.
If the company uses unamended Model Articles, the resignation takes effect as stated in the resignation letter.

Does the company need to approve the resignation?

No, the company does not need to approve a director’s resignation.
However, it is standard practice to note the resignation at the next board meeting.

What are the filing requirements at Companies House?

The company must notify Companies House of the resignation within 14 days.
The following forms are used:
- Form TM01 for individual directors.
- Form TM02 for corporate directors.

Description

When do I use this document?

where an individual’s personal service company has been appointed to act as a consultant
for the individual to give direct legal undertakings to the client

What are the key features?

legally binding undertakings from the individual which owns the service company to the client
undertakings relating the following matters:
- continued ownership of the service company by the individual
- availability of the individual to perform the services
- performance of the Consultancy Agreement by the service company
- continued employment of the individual by the service company
- ownership of intellectual property in materials/work product generated during the consultancy

What else do I need to know?

This is a Side letter to a consultancy agreement where the consultant is an individual’s personal service company. Under the side letter, the individual gives undertakings to the client regarding the personal service company and compliance with the consultancy agreement. This letter is for use in conjunction with a Consultancy Agreement between the client and the individual’s service company.

A Consultancy Agreement may be for the appointment by the client of an individual’s personal service company. The service company agrees to provide consultancy services to the client, which will be carried out by the individual.

The individual is not a party to the Consultancy Agreement itself, which is between the client and the service company.

To help ensure that the individual will be available to provide the services and responsible for the performance of the Consultancy Agreement by the service company, the client will often require a letter from the individual to the client under which the individual will enter into legally binding undertakings directly with the client.

More information about consultancy agreements

What other documents are available?

For a form of consultancy for a service company on a time basis, see

Consultancy Agreement: company (time-based)

For a form of consultancy agreement with a service company on a project basis, see

Consultancy Agreement: company (project-based)

Explanatory Guides

As with all of our document templates, your purchase will include access to clear explanatory guidance on the document and its use.

£15.00 exc VAT

Updated by a lawyer on 03/09/2024

Updated By a lawyer on 11/15/2022

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Company director resignation letter template

When do I use this document?

What are the key features?