CIC Association

Serving Community Enterprise

Hi,
I'd like to resign from my position as a director with immediate effect. Is this possible?
Any advice is much appreciated.
Thanks.
Minet

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Hi Minet,

If you have a service agreement this may contain a provision concerning how to resign as a director of the company, there is often a notice period and a process to follow.  If you do not have a service agreement or it is silent on this issue the Articles of Association may contain provisions on director resignations.  The Articles of Association can be downloaded for free from the Companies House website.

Where there are no provisions, a director may resign at any time by notice to the company.  You should write to the CIC at the registered office address and advise them that you wish to tender your resignation.  The company should then file form TM01 with Companies House terminating your directorship.  Under s.167 of the Companies Act 2006, they must inform the Registrar of Companies of changes to directors within 14 days. Remember, it is the company’s responsibility, not that of the resigning director, to inform Companies House.

It may be prudent to send your notice by recorded delivery and retain proof of posting.  This will be helpful where disagreements exist or when the director has legitimate doubts that the company will promptly update its records and inform Companies House of the resignation.  I would quote the company’s responsibilities under s.167 and ask them to keep you informed of the action taken. 

It is worth noting, that as the company is a CIC you will have recourse to the Regulator of Community Interest Companies if the company does not meet its responsibilities under the Companies Act.

I hope this is helpful

 

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