Resignation

Actually to sum the postion, It is the duty of the company to file form 32 if any director resigns from the directorship but however the company must have received a signed resignation letter from the concerned director.

Aftermath effects if the director does not sumit his resignation letter:

1. The company shall step back from its responsibility stating that it does not receive or accept the resignation letter from the concerned director.

2. The company shall further state that only because of not receiving the resignation letter it did not file form 32.

3. Hence it is the duty of the director to see to that his resignation letter has been properly accepted and acknowledged by the company otherwise the director may land up in unnecessary litigations before the Company Law Board & Hight Court.

4. These situations shall mostly arise in case of directors who has been inducted into a company for prestige issue. The concerned person may not be actively participating in daily affairs of the company & he might think that he has literally lend his name for the company's image to reach places but this attitude might go wrong if the company does not do well. In such cases it is always better for all the directors to stick to the procedures laid down in the companies act, 1956 with a professional advice.