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CS Executive · Company Law and Practice · Directors

Ms. Anita Rao resigned as a director of Sundaram Foods Ltd on 5 June. She wishes to place her detailed reasons before the Registrar. What does the Companies Act, 2013 provide on this?

She may forward a copy of her resignation along with detailed reasons to the Registrar within thirty days of resignation, in the prescribed manner. The proviso to section 168(1) makes this her option, not a duty, and it needs no Board approval.

  1. AShe may forward a copy of the resignation with detailed reasons to the Registrar within thirty days of resignationCorrect
  2. BShe must forward the reasons to the Registrar within sixty days of resignation
  3. CShe must obtain Board approval before sending reasons to the Registrar
  4. DShe may send reasons only to the Tribunal and not to the Registrar

Explanation

The proviso to section 168(1) lets a director forward a copy of the resignation with detailed reasons to the Registrar within thirty days of resignation, in the prescribed manner. It is optional ('may'), and no Board approval is required. The sixty-day option has the wrong period.

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