Letter of Resignation as a Director

This is our template Letter of Resignation as a Director. We designed it for you to use whenever a director is resigning from the company. You will want them to confirm their resignation and also state that they have no claims against the company. You can quickly customise it to suit your individual requirements.

David, our co-founder and solicitor of over twenty years, drafted this template. This ensures that you can rely on the document being up-to-date and legally comprehensive. Our detailed guidance notes (free with the template) offer a clause-by-clause explanation of the agreement. They make completing the final document simple and fast. A copy of the guide is available below, but you will also get the guide when you purchase the template.

Note that a company cannot “refuse” to accept the resignation of a director (or if it does, it is of no effect). So the purpose of holding a board meeting once you have received the letter of resignation of a director would be just to note the situation and approve the filing of a form TM01 regarding the resignation, to be filed at Companies House. The board meeting could also consider appointing a replacement director, especially if this is needed in order to maintain any minimum number of director required by the company’s shareholders agreement or Articles of Association.

Using Our Letter of Resignation as a Director Template

You can download this template in Word format at the click of a button once purchased. Then edit it simply to suit your own needs. We provide a full money-back guarantee if you are not happy with your template document for any reason.

Once purchased, the template can be reused by you. So you can create additional letters of resignation at no further cost. We keep our templates under review to ensure they are up-to-date. When we update a template that you have bought, we will notify you by email. You will then get a free update of the template.

Guide to our Letter of Resignation as a Director

Our Director’s Letter of Resignation template is for use by a director who is resigning as a director (and possibly also as an employee) of a limited company. It is often useful to have their resignation in writing to make it clear that they have resigned, rather than that they have been removed by the shareholders (as that entails a different formal procedure). This will also help avoid future disputes about the resignation.

The letter is short and simple, but it has all it needs for such a resignation letter.

Clauses in this Director Resignation Letter

Address it at the top to the company. Insert the name and address of the registered office of the company where indicated.

Fill in the date, i.e. the actual date you sign it. You can write this by hand once you have signed the letter.

Below where it says “Dear Sirs”, fill in the name of the company in the heading of the letter.

First paragraph

In the first paragraph, on line 1, delete the words “and employee” if the director was not an employee or is not also resigning as an employee at the same time. On lines 2 and 3, keep the option that applies and delete the one that does not, as to when this resignation takes effect: immediately or at the end of the next board meeting.

Second paragraph

The second paragraph makes it clear that the director has no outstanding claims against the company, e.g. for director’s fees, pay, expenses, claims for loss of office as a director. Please note that while this might also refer to his having no claims in respect of his status as an employee on lines 3 and 4, this would not be legally binding on him without his also entering into a settlement agreement (previously known as a “compromise agreement”). So if there might be such a claim as an employee, it is best if you arrange for the director to sign a settlement agreement too. Legalo has a template settlement agreement if you need one.

If the director is not an employee, delete the reference to this. See lines 3 and 4 of the second paragraph.

Signing and dating the director’s resignation letter

Once the director has signed the deed, you should date it on the top of the page (with the date he signed it or a later date, but not an earlier date). The director should keep a copy of the signed deed and give the original to the company. The company should then register the director’s resignation in the usual fashion at Companies House using form TM01 (in a printed form or online).