How to Resign as a Director

If you hold a Director position for a company then the decision to resign from that post needs to be taken carefully and all angles of any contracts and documents you have signed need to be looked over and checked about your obligations upon leaving the company.

First of all it is important to go through the legal side of being a director and to ensure that any documents, contracts, confidentiality clauses have been looked at thoroughly. Maybe you have shares with the company being a Director so all these things are important to consider.

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Legal obligations

Go through your contract of employment and note how being a Director effects your position when resigning. It is the not the same as being an employee for the company as you could have a financial impact or gain in the business and you need to know these things before attempting to resign.

Go through the correct channels

Before resigning from your position as Director it is important to go through the correct channels. Talk to your immediate boss and discuss the fact that you have decided to resign from your position of Director and what impact this will have on the business and future.


Make sure you have good reasons for resigning from your role as Director. Most people usually do and I don’t think the situation is taken lightly at all but try not to be hot headed about the resignation and weigh up the decision carefully and think about the future and what this means through resigning from such an important position.


Make your resignation letter detailed but to the point. Focusing on when you are leaving, a brief as to why although this is not essential following a meeting with your immediate boss and an emphasis that you will make the transition to leaving as smoothly as possible for all concerned. Make sure you put your last working date on the letter in accordance with your contract. As a Director you may be contracted to a 3 month notice period in some companies.

Garden Leave

Beware that you could be put on Garden Leave because of the seniority of your position and information you would still be susceptible to through being in the company. It could be seen as a conflict of interest having you still working in the office so this is something to consider. Garden Leave is a clause in a contract that allows a company to let you serve your notice period at home away from aspects of the business. You are still technically employed by that company until you end date.


Make sure you get someone to check what you are writing and signing to ensure that it is all above board and you are fulfilling your legal requirements. It is therefore a good idea to make sure that someone has checked over any information in writing.

Companies House

If you are listed as a Director for a company then it is important that Companies House are informed that you are resigning. Normally the company will be responsible for this but if you have any feelings that this will not happen, make sure that you get proof of postage when sending any documentation to the company and keep a paper trail in case there is a dispute later down the line.

Owed anything?

These are important considerations to make. Do you owe the company any monies in terms of Director Loans? These will need resolving before leaving the business or an agreement in place at least. Or does the company owe you any monies from you being a Director of the business. You will have to agree with the company of how you are paid this outstanding amount.

Customers, Clients and Suppliers

You will need to ensure that the company deal with your resignation effectively to the clients, customers and or suppliers that you have been in contact with and ensure that you are bound carefully by your contract of employment and that in most cases these people know who they should now be dealing with instead of you. Although this is down the company in most cases it is important for your peace of mind that things are left in a good manner.

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