Director Letter of Resignation (Short Form)
In order for a person to formally resign as a director of a company, it is necessary for them to send a letter of resignation to the company formally informing it of his or her resignation.
This is a short form letter of resignation. It does not require a director to waive all claims against the company arising from his or her resignation as a director.
Further details are set out below.
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In order for a person to formally resign from office as a director of a company, it is necessary for them to send a letter of resignation to the company secretary formally resigning as a director.
There are two standard forms of letter of resignation – a long form and a short form. With a long form letter of resignation, the resigning director waives all claims that he or she may have against the company arising from or connected with his or her resignation or otherwise. In a short form of resignation, the director merely resigns as a director.
From the company’s perspective, it should always seek the long form version of the letter of resignation as it affords the company a strong degree of protection against future law suits by the director. From the individual’s perspective, he or she will usually be happy to sign the long form unless they are contemplating some form of litigation against the company – in which case they may wish only to sign the short form.
In a long form letter of resignation, because the director is waiving any claims that he or she may have against the company, he or she must sign the letter of resignation under seal. This means that he or she must sign the letter in the presence of a witness. The witness, in turn, must acknowledge that they witnessed the director sign the letter by signing their name under the signature of the director.
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