Director resignation letter
Written notice of resignation from a director
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.
About this director resignation letter
The resignation letter from a director to the company can be short and simple to achieve the purpose of the director’s resignation.
At times however, a longer form of letter is used. This is usually the case if there is a negotiated sale of the company and the seller resigns as a director on completion of the sale. The buyer may require that the seller includes in the resignation letter:
- confirmation that the company does not owe the resigning director any money
- confirmation that the resigning director does not have a claim against the company and waiving any claim that may exist
If the longer form of letter is used, it will need to be executed by the resigning director as a deed (in the presence of a witness) in order for these confirmations and waiver to be legally binding against the director.
- alternative forms of letter – simple and longer form
- longer form letter includes
- confirmation that no amounts owed by the company
- confirmation of no claims against the company and waiver of any claims that may exist
- execution and delivery by the resigning director as a Deed
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