Letter of resignation (director)

by Practical Law Corporate

A standard document containing a template letter for a director's resignation from a private company, intended for use under the law of England and Wales. This document is particularly useful in corporate transactions, such as a company sale, where a buyer requires incumbent directors to step down upon completion. The letter clarifies the effective date of the resignation and addresses the separate termination of a director's office and their potential employment. The document also includes a waiver of claims, which seeks to release the company from liability for compensation for loss of office and any other claims the director may have against the company. The accompanying drafting notes provide guidance on important legal considerations, including restrictions on payments for loss of office under the Companies Act 2006, the potential need for member approval, and the distinction between waiving common law and statutory employment claims.