Section 168 of CA 2013 : Section 168: Resignation Of Director

Explanation using Example

Imagine that Mr. Gupta is a director at XYZ Pvt. Ltd. He decides to resign due to personal reasons. He writes a formal resignation letter addressed to the Board of Directors of XYZ Pvt. Ltd., stating that his resignation will be effective from the end of the month. The Board takes note of Mr. Gupta's resignation in their next meeting and informs the Registrar of Companies (RoC) about the resignation within the prescribed time frame, following the procedure laid down by the law. They also mention Mr. Gupta's resignation in the director's report in the next Annual General Meeting (AGM).

Even though Mr. Gupta has resigned, if any legal issue or offense comes to light that occurred during his tenure, he may still be held liable for it after his resignation.

In an unexpected turn of events, the other directors of XYZ Pvt. Ltd. also resign shortly after Mr. Gupta. With no directors left in the company, the promoters of XYZ Pvt. Ltd. step in to appoint new directors to ensure the company's operations can continue until new directors are elected in the next AGM.