We are the Directors of a Multi state co-operative society operating in Tamilnadu, Karnataka and Puducherry. There are 20 Directors in our society and recently nine of Karnataka Directors sent mass resignation to Chairman. Chairman called up and told us that the resignation had not been accepted but nevertheless he sent letter seeking further clarification on the issue of mass resignation.
But after two days Managing Director of the society sent letter stating that the resignations have been accepted. Chairman never called Special AGM to accept the resignation.
Is it legally valid? Can Managing Director accept the Mass resignation?
I C Naik
Directors’ resignations are governed by provisions of Bye Laws of a society concerned. Ordinarily it’s a formality and resignation is effective when received by Society in the office.
If acceptance is communicated it looks good, even if not communicated it comes in to force upon expiry of a time limit fixed in Bye Laws.
There can be no force ” Not to resign individually or enmass.” General Body does elect them but resignation is not an agenda of General Body, Board can fill up casual vacancy arising on resignation for remaining tenure of the director elected by General Body.