Resign As Company Director

d4funky1 · Mar 9, 2010

Hi,

I am one of two directors of a ltd company.

The company has been running since September 2009 and does not need to fill accounts until August 2010.

It has been brought to my attention that the other director is a waste of space and I want nothing more to do with them.

The company if worth nothing and i'm not interested in any money value for my so called share/s.

Do I simply fill out a Form 288b and that's the end of it or is there more involvement than this?

Also what would happen if the other director played up and didn't sign the section that is required by them? Are they legally allowed to do such a thing? (There are no secretarys/administrators etc etc).

Also would I be obliged to stay on for any period of time as certain aspects of of the day to day running of the business are part of my work load and no-one knows how to do it?

How long does it normally take once the course of action is followed for my name to not be down as a director for this company?

A lot of questions i know but if anyone could offer any assistance it would be greatly appreciated.

Many Thanks

JEREMY HAWKE · Mar 9, 2010

Do you have to give a reason for jumping ship?

Like director a waste of space

elaine@cheapaccounting · Mar 9, 2010

Are you just a director or do you own shares?

d4funky1 · Mar 9, 2010

I'm a director

JGOffshore · Mar 9, 2010

You resign by filling in the appropriate form - now TM01 not 288b - which does not need counter signing by anyone else. Basically the form can be signed by any director or officer who was in post at the date of resignation and that includes you so long as you sign the form on or before the effective date of your resignation.

d4funky1 · Mar 9, 2010

Thanks JG

What about the other aspects am I bound to anything? I'm confident that there us no exit plan agreement set up between us.

JGOffshore · Mar 9, 2010

Your resignation as a director is separate from any other aspect and thus you could choose to stay on as an employee to do whatever work is required or you can just resign from the job as well. If you do want to stay on and the other director "sacks" you then you would have a case for unfair dismissal. Indeed you might anyway have a case for unfair dismissal if you decide to resign the job as well as the directorship.

You may well still be a shareholder and depending on what proportion of shares you hold you could cause the other guy some headaches. If you think that you have no value in the shares offer to transfer them to him free of charge otherwise you can hang on if you like.

If you think that the other director has been doing anything illegal you may need to take advice just to cover yourself but if, as sounds likley, you just have come to realise that you don't want to be in business with them, transfer the shares and walk away.

d4funky1 · Mar 9, 2010

So effectively:

1) fill out and send off the TM01 form
2) visit the account to deal with the transfer of shares (for free) to the other director
3) walk away

What position would that leave me in if the other director continually contacts me after the resignation asking 'how do i do this' and 'how do i do that'?

Thanks

mahutchinson · Mar 10, 2010

If you give advice after resigning you open yourself to all kinds of problems withn him if things go wrong. The other director is now responsible for running the company and anything the company does will ultimately be his responsibility, not yours. My answer would be, tell him to naff off.

awowfactor · Apr 12, 2010

elainec100 said:
Are you just a director or do you own shares?

Iam a solo director and own the 1 share in the company i wish to transfer my directorship to a new person and the share the new person will become the director on appointment how do i deal with the 1 share?

Lawyer · Apr 12, 2010

d4 you cannot force your shareholding back on the other shareholder although as you are offering it for nothing I doubt he would object but that is a m ere technical issue. If you are also an employee you may have to give minimum periods of notice to cease employment.

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