Resignation of a director not communicated to Registrar by company ‑ Whether Registrar should act upon communication received from director - Companies Law - Letter No. 42(400)‑CL‑II/59,

Circular : Letter No. 42(400) ‑ CL ‑ II/59, dated 29 ‑ 12 ‑ 1959. Subject:- Resignation of a director not communicated to Registrar by company ‑ Whether Registrar should act upon communication received from director Although a director is required by section 264 to file with the Registrar of Companies his consent to act as such director, there is no provision in the Act under which the director can communicate his resignation from the directorship to the Registrar. The responsibility for the communication of such resignation has been cast by section 303(2) on the company. The omission of the company to notify the resignation of the director, therefore, puts such director in an embarrassing position. It has, therefore, been decided that where the Registrar receives any communication from any director about his (director s) resignation, the Registrar should enquire whether the resignation of such director is or not bona fide and if he finds that such director has bona fide resigned from his directorship of the company, he should not start any prosecution against such director, irrespective of the fact whether such resignation was or was not accepted by the company.