The director of the company holds an important position in the company and takes major decisions for its growth. The growth of the company is linked to the growth of the employees who put in strenuous efforts to take it to the next level. Among the board of directors, anyone can resign due to any professional or personal reasons. In this situation, a little patience is required to bring everything to its normal routine. The situation can be chaotic but it can be easily sorted in a very calm and composed manner. The first and the foremost task is to inform the other position holders of the company so that the proper procedure is followed to relieve him from his duties and responsibilities.
What to do next?
The big industries have big issues to handle and the smaller ones have small issues. Therefore, the serious issues to be followed so nicely and intelligently that the other competitors may not take the benefit of this adverse situation, consequently, the company’s growth may suffer. It is better to consult with the board of directors or the CEO of the company rather than thinking what to do when the director of the company resigns. The post of the director should not remain vacant. As soon as the former director resigns, the post will be filled with the other eligible and worthy candidate of the company. A wise man to be given an opportunity who easily takes over the responsibilities and knows how to act in such a situation. It is also significant to take the opinion of the other members of the board and act according to the majority.
Bid him adieu on cordial relationships
It is important to understand that the company should not keep any grudge with the resigning director. In fact, a short party can be thrown to give him warm adieu and blessings for all his future endeavors. Make him feel special on that day and honor him for his services to the company. All the final settlements to be done before relieving him. The resignation should be taken in black and white so that it can be presented to the higher authority for its final approval. The acknowledgement of the other directors to be enclosed with the resignation letter in which the reason of resignation to be clearly mentioned. The company cannot prevent a director from resigning on any grounds.
Every country has its own system to handle this situation. For example: in Singapore if any director of the company resigns, then it is an official duty of other directors of the board to inform ACRA (Accounting and Corporate Regulatory Authority, Singapore) about the resigning director. It becomes easy to make the changes in the board of directors without bringing any halt in the process of its functioning. The provisions for the appointment of Directors are clearly highlighted in the Companies Act, similarly, the provisions related to the resignation of a director is obvious if he remains absent for a longer period of time without any information.
