Section 259 of the Companies Act, 2013
Section 259 of the Companies Act, 2013
Section 259 of the Companies Act, 2013 deals with the resignation of directors from the Board of Directors of a company.
🔹 Section 259 – Resignation of Directors
🟡 Key Provisions:
Notice of Resignation:
A director may resign from his office by giving a notice in writing to the company.
Effective Date of Resignation:
The resignation takes effect from the date on which the notice is received by the company or any later date specified in the notice.
Filing with Registrar of Companies (ROC):
The company must file the necessary form (DIR-11 and DIR-12) with the ROC within 30 days of the director’s resignation.
Failure to file is punishable with a fine.
Board Meeting:
The Board of Directors should take note of the resignation in its next meeting and record it in the minutes.
✅ Objective:
To provide a clear and formal procedure for a director to resign from the company’s Board, ensuring proper documentation and regulatory compliance.
Let me know if you'd like:
The bare act text of Section 259
The format/sample of a resignation letter
Details on ROC filing process and forms
Penalties for non-compliance
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