Sir
We are the Directors of a Multi state co-operative society operating in Tamilnadu, Karnataka and Puducherry. There are 20 Directors in our society and recently nine of Karnataka Directors sent mass resignation to Chairman. Chairman called up and told us that the resignation had not been accepted but nevertheless he sent letter seeking further clarification on the issue of mass resignation.
But after two days Managing Director of the society sent letter stating that the resignations have been accepted. Chairman never called Special AGM to accept the resignation.
Is it legally valid? Can Managing Director accept the Mass resignation?
I C Naik
Directors’ resignations are governed by provisions of Bye Laws of a society concerned. Ordinarily it’s a formality and resignation is effective when received by Society in the office.
If acceptance is communicated it looks good, even if not communicated it comes in to force upon expiry of a time limit fixed in Bye Laws.
There can be no force ” Not to resign individually or enmass.” General Body does elect them but resignation is not an agenda of General Body, Board can fill up casual vacancy arising on resignation for remaining tenure of the director elected by General Body.
July 24th, 2012 at 22:23
I do not know what the Law or the By Laws say in this regard but I believe that the resignation of Directors must be accepted by the Board. The resiging Directors must be told of their continuinf liabilities for a period of timer after resignation comes into force.
President
International Cooperative Housinf Foundation for
Asia & the Pacific
August 2nd, 2012 at 14:57
1) According to MSCS, once the Director(s) sent resignation letter to the Management Head (either in mass or individual) they have no further relationship with the Management.
2) There is no need of calling Special AGM for accepting resignation.
3) Further The Managing Director can accept the resignation and the resignation is legally valid.
August 2nd, 2012 at 18:27
I am vice chairman of a society named called Tamla lamps in Tezu, Lohit District of Arunachal Pradesh
I would like to tell you that in our society every Managing Director are coming from Govt. servant and they misused society fund. so, I want to know where I complaint, whom to complaint, Sir, can you give me any address of Central Body, because it is useless to give complaint our our state government
Thanking you Sir,