The articles would need to be checked to ensure that the members have authority to call a general meeting. If there is no such power contained in the articles, an application may be made to the Court which has the power to order a general meeting where it is impractical to call a meeting in the manner set out in the articles of the company or under the Companies Act So whilst a company will need to address the consequences of its last director leaving office, for the resigning director the consequences are minimal.
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There are circumstances that can leave a company with no directors. Such circumstances include where a sole director:.
Companies with multiple directors could also find that they are left with no directors, for example if all of the directors are involved in an accident or if the directors are required to retire by rotation and none are re-elected. When a company finds it has no directors it is in breach of the Companies Act , which requires a private limited company to have at least one director and a public limited company to have a minimum of two.
In such cases, any shareholder can request that a general meeting is held for a new director to be appointed.
Personal guarantees are commonly required by lenders when businesses seek funding. If you have provided a personal guarantee for company borrowing, it remains in place following your resignation. Should the business fail to keep up repayments on a loan that you have personally guaranteed, the lender will activate the guarantee. Even if you are no longer a director, they will expect the full amount of the guarantee to be repaid.
Depending on your relationship with the company, you may not even realise the business is experiencing financial problems. Resigning as a company director is a straightforward process in a practical sense, and in the majority of cases there are no issues going forward.
If you would like more professional advice and guidance on resigning as a company director, please contact our partner-led team at Begbies Traynor Group. We can offer you a free, same-day consultation, and operate an extensive network of local offices throughout the UK.
Here at Begbies Traynor Group we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. Can I resign as a company director? The UK's Market Leader. Affected by Covid? Restructuring or Closure. Published: 28th June Understanding director resignations and shareholder disputes If you are thinking of resigning as a company director, there are specific steps you and the company must take.
How do I resign as the director of a limited company? These are the main steps to take: Inform other company directors Make your fellow directors aware of your intention to resign. Are you also a shareholder?
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