Resigning a Company Director!
When a company director leaves a company it is important to update the company records correctly. You need to inform Companies House and update the registers. The process is often called terminating an appointment.
To tell Companies House that a Director has resigned you need to file form TM01. You can send in a printed paper form or file the changes online at Companies House using the electronic filing service.
You should also update the company registers. The registers should be held at the registered office and kept up to date. It is a legal requirement to maintain your company registers with correct details.
The company should always have at least one director appointed. If resigning a sole director it is recommended that you appoint the new one prior to this to ensure continuity.
For further advice on completing form TM01 please contact Companies House on 0303 1234500.
Company Formation
- Full company documents
Directors with Shares in the Company!
In many cases company directors are also shareholders. Directors can resign but remain as shareholders in the company. If the departing director does not want to keep their shares, they can be sold or transferred to someone else. Alternatively the company may opt to ‘buy back’ the shares or arrange for the shares to be cancelled.
You cannot force a shareholder to give up their shareholding. If relationships have broken down with a departing director that holds shares, then you may need legal advice regarding the company shares.