DH wants to resign as Director of small company - how can he do that?

[Numberfour]

DH and his business partner have been running a Limited Liability Company since June 2008 and despite best efforts, things are not working out.

He wants to resign asap. Neither of us know much about company law at all so I wondered if anyone on MN could lead us in the right direction? How can he resign?

Thanks

I think he needs to speak to a solicitor as I assume he wants to make sure that his personal liability for the company is properly severed. For example does he have D&O insurance etc to sort out?

Speak to a solicitor and do it properly

D&O insurance? sorry to ask twittish questions. i know less than nothing about this
type of thing.

googled D&O ins and no, does not have it.

going to CAB in the morning as a starting point.

thanks, pagwatch

Speak with Federation of Small Businesses, they're very useful in situations like this, although you might have to be a member.....businesslink.gov.uk might be helpful too.

he needs to file a form at companies house to say that he resigns as a director, it will be on the companies house website to download.
He may still have duties to creditors so he needs to be careful, and if the company has a large amount of creditors he should see an insolvency practitioner.

Sorry, that's about as much as I can get out of my dh. Not much help I'm afraid.

I'm not sure but I think that dh was suggesting that it might not be a good idea to resign, and it won't necessarily relieve him of his responsibilities. You need to see a professional. Sorry not to be of more help.

Thanks, frizbe and minkyborage. we are off to CAB tomorrow morning as a starting point. we understand that by resigning he will not be absolving himself of responsibility. he just wants to put and end to it, and commence damage limitation!

it is putting such enormous strain on him that the sooner he is out, the better. and it is DEF not for his lack of effort.

I'm a solicitor and practice corporate law.

Is he also a shareholder in the company by the way? I'm wondering if there are any shareholder agreements in place etc. Does he have a service agreement?

The form that you need is accessible on Companies House. I would not simply resign using that form though. Check the company's articles (you can download these from Companies House for a fee of £1 - I think that's all anyway, that's what we pay through Companies House Direct). You need to be careful that you are doing nothing underhand if you see what I mean. Really there should be a board meeting, minuted, at which he hands in his director's resignation letter. Directors have statutory duties under the Companies Act 2006 and he needs to ensure that he has complied with all of these.

I think you need to get some legal advice, it shouldn't really cost more than a couple of hours.

If I can help though, do let me know.

as mamayaya has implied resigning as a director won't remove his involvement as a shareholder.