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.

When do I use this document? for termination of a contract by mutual agreement of the parties for a contract governed by English law What are the key features? agreement in the form of a deed of termination alternative wording depending on whether any provisions of the contract will continue in force after termination alternative wording depending on whether termination amounts to a release of all claims under the contract What else do I need to know? The parties to a contract may agree to bring an agreement to an end earlier than originally envisaged. The contract may itself provide for circumstances in which the contract may be terminated. These include: completion: termination of the contract once the subject-matter of the contract has been achieved notice: termination by one party by giving a specified period of notice to the other party breach: termination by one party either on immediate notice or by giving a specified period of notice following the breach of the contract by the other party (the defaulting party). The contract may provide that the breach must be “material” or “repeated” and/or that the defaulting party has a period of time in which to remedy the breach before the non-defaulting party may terminate the contract In the absence of a party being entitled to terminate the contract by its terms, the termination of a contract will require the mutual agreement of both parties to the contract.

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?

for termination of a contract by mutual agreement of the parties
for a contract governed by English law

What are the key features?

agreement in the form of a deed of termination
alternative wording depending on whether any provisions of the contract will continue in force after termination
alternative wording depending on whether termination amounts to a release of all claims under the contract

What else do I need to know?

The parties to a contract may agree to bring an agreement to an end earlier than originally envisaged. The contract may itself provide for circumstances in which the contract may be terminated. These include:

completion: termination of the contract once the subject-matter of the contract has been achieved
notice: termination by one party by giving a specified period of notice to the other party
breach: termination by one party either on immediate notice or by giving a specified period of notice following the breach of the contract by the other party (the defaulting party). The contract may provide that the breach must be “material” or “repeated” and/or that the defaulting party has a period of time in which to remedy the breach before the non-defaulting party may terminate the contract

In the absence of a party being entitled to terminate the contract by its terms, the termination of a contract will require the mutual agreement of both parties to the contract.

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?