Answer:
A director wishing to resign from their role as a director can do so through a director’s resignation letter. If you are a company director, you will need to sign, date and deliver the resignation letter to the company at its registered office.
When Is a Director’s Resignation Letter Used?
A director’s resignation letter is used when a director wishes to cease their role as a company director. Most of the duties that bind a director will consequently end when the director no longer acts in that role.
After you resign as a director, the Australian Securities and Investment Commission (ASIC) will need to be notified within 28 days of the resignation. In most cases, the company will update its director’s register and update its ASIC records to reflect your departure. You do not have an obligation to notify ASIC. However, you can submit a completed ASIC Form 370 and attach a copy of your resignation letter to the company.
How Do I Draft A Director’s Resignation Letter?
There is no specified format that a director’s resignation letter must take. However, a director’s resignation letter should be clear that you are resigning as a director with effect from a specific date (either the date of the letter or a specific date in the future).
It is not uncommon for the company to also require you to provide a confirmation. The confirmation should note:
- that the company has received everything to which you were entitled to in your capacity as a director; and
- that you release the company from any claims that you may have against the company in your role as director.
