Director Resignation Guide for Singapore Small Businesses

Handling a director resignation properly is crucial for any Singapore small business, especially if you want to stay compliant with local regulations. Whether the resignation is voluntary or due to other reasons, you’ll need to follow the right steps and inform the necessary authorities promptly. If you’re working with corpsec services in Singapore, they’ll usually manage the process—but it’s still essential to understand what’s involved.

1. What Does Director Resignation Involve?

In Singapore, directors can resign by giving written notice in accordance with your company’s constitution. If the resignation is accepted, it must be lodged with ACRA (Accounting and Corporate Regulatory Authority) without delay. However, a resignation cannot proceed if:

• It leaves the company with no local resident director.

• It breaches your company’s constitution.

• The director has unfulfilled statutory duties or unresolved liabilities.

2. Steps to Take When a Director Resigns

Once the resignation is initiated, the company must take formal steps to document and notify the appropriate authorities. Here’s a step-by-step breakdown:

• Obtain written notice from the resigning director.

• Hold a board resolution to accept the resignation and update internal records.

• Ensure at least one local director remains (as required by Singapore law).

• File a cessation of director notice (Form 15) with ACRA via BizFile+ within 14 days.

• Update company registers such as the Register of Directors.

• Notify stakeholders like banks, auditors, and partners, where applicable.

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3. Important Considerations for Singapore Small Businesses

Before proceeding, keep in mind:

• Local Director Requirement: Every Singapore-registered company must have at least one director who is ordinarily resident in Singapore.

• Timing and Accuracy: Timely filings reduce the risk of penalties or non-compliance flags with ACRA.

• Use of Corpsec Services: Working with experienced corpsec services in Singapore helps ensure that filings and records are correctly updated.

• Board Composition: Review if any roles need to be filled, especially if the resigning director was also a shareholder or held key responsibilities.

Summary

Managing a director resignation the right way helps maintain corporate governance and regulatory compliance. For a Singapore small business, understanding the legal steps and filing requirements is just as important as having the right team in place. Whether you’re doing it independently or with corpsec services, acting promptly and correctly will help keep your business running smoothly.

Changing your Company Secretary is easy with Counto

Worried about the complexities of switching corporate secretaries? Let Counto take the reins. Once we receive the current corporate secretary’s resignation letter, we’ll handle every aspect of the transition seamlessly. With Counto, you’re not just getting a service – you’re gaining a partner dedicated to your company’s smooth operations and compliance. Speak to us directly on our chatbot, email [email protected], or use our  contact form to get started.