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TOPIC: Sole Director Resigns

Sole Director Resigns 9 years 3 days ago #4377

  • Lorien
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I need to find out information on what to do when the only director of a company, resigns without a replacement.

I've made some queries to lawyers and auditors and both seem to agree that the companies act allows for a director to resign whether they are the only director or not.

It would also make sense that should the only director of a company resign that the right of shareholders to appoint a director then becomes a responsibility and they would be obligated to nominate/find a replacement.

This being said the CIPC doesn't seem to make allowance for a company to be without a director. This is prejudicial to a former director of a company that hasn't been replace. The individual appears to be responsible for a business on the CIPC system but in reality holds no position in the company.

How does one register the resignation of the only director of a company? Also would you agree that the shareholders become responsible for the appointment of a new director?
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Sole Director Resigns 9 years 3 days ago #4378

Lorien, just a few questions please
Except the director, how many shares is issued and how many shares does he hold?
If he is the sole director and have no other shareholders the only remedy the clients, staff or suppliers have is to try and ger what he owes them, or they owe him. If he resign and dont sell the company or name of company it stops there. The company can exist on its own if the correct steps where followed
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Sole Director Resigns 9 years 2 days ago #4379

  • Lorien
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Francois, for arguments sake lets say the director holds no shares in the company. Can the director resign and leave the company without a director?

Who then becomes responsible for the company and would you agree that the shareholders become obligated to fill the post?

The problematic part, if I'm correct in my thinking, is how to get the CIPC to register this?
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