Termination of Office

Legal changes in a director’s status, whether by resignation or removal, are governed by company law and contract law principles. A director’s official status is independent of Companies Registration Office (CRO) registration, which is a compliance requirement but does not affect the legal standing. Assignments of office are ineffective without special resolution approval.

The constitution may allow board members to remove a director. This decision must meet fairness standards and be made in good faith for the company’s benefit, though it may lead to claims for contractual breach. Certain actions, like bankruptcy, disqualification, or prolonged absence, may automatically vacate a director’s office. Notifying the CRO of a director’s change in status is mandatory within 14 days. Directors may directly notify the CRO if the company fails to do so.