When it comes to resignation, everyone is shaky. While some decisions are made in haste, some take unusually long. Some resignations are thought out and some are done in the spur of a moment. However, there is a predefined way of doing things. So also, for resignations. Being part of a company, you hold a position. The company is dependent on you as per your role in the company. We all know the general process of discussing with superiors and handing over a resignation letter to the manager. What happens when you’re in a higher position? Let us know about that the How To Resign From Board Of Directors?
How to resign from a board of directors?
Everyone knows the position of a board director. It is one of the highest ranks in a company. One who makes the most important and necessary decisions. It is with their acknowledgment that things go forward in a company. How do you resign from such an important position? Rather, why would you? There are ample guidelines and reasons for this. The procedure is simple and constructive. Unlike the whole hassle that it may seem to be, it is just another resignation. The procedure is different, but this article will get you through all the stages.
What is a board of directors?
So what exactly is a board of directors? First of all, it’s a group. This automatically tells you that decisions are taken unanimously. A Board of Directors is an essential part of any and every company. There are quite a few important tasks that require the collective approval of the Board of Directors. Their prime duty is to be the face of the shareholders’ decisions. Envisioning for the company and monitoring the goals is also their duty. Additionally, they are in charge of the approval of hiring and firing of members. Being coordinated members of the company, their tenure lasts longer. While the period is between 5 to 10 years, it differs in each company.
What does it mean for a company?
You haven’t come across a company without a Board of Directors. That’s how important they are. Without them, the higher superiors cannot go ahead with their plans. As mentioned earlier, they execute the desires of the shareholders. So, no company can act without consulting the Board of Directors first. Their decisions contribute to looking after the welfare and functioning of the company. They know the company, its values, and strategies in and out. Therefore, the role of a Board Director is highly imperative. How do you resign when you’re part of such an important group? There is a procedure.
Deciding on resigning- Do you want to and should you?
Being such an influential part of the company, it is definite that each member is renowned and valued. And if you want to resign, you sure have to think hard about it. It is not an easy decision to make. It is not only your position at stake but also a crucial space being made vacant in a company. Before you decide to resign, consider a few things. These may change your mind or help bring out some other solution.
Reason for resigning
Carefully look through your reasons for resigning. Is it worth it? Whether it be another job offer or some misunderstanding. Whether you have other issues or whether it’s for satisfactory reasons. You have to pay close attention to your decision. It’s not a simple role you’re leaving. You’re letting go of huge responsibility and group. You have to have a valid reason. Use your professional experience and narrow down your doubts. Understand whether it truly makes sense to resign.
How does it affect you and the company?
The position of a Board Director is not a regular one. It takes a lot of experience and potential to get into such a role in the first place. Consider how your resignation would affect you. Are you content with letting go of your position? Will you be able to leave the company as is? Also, think about your company. Even though you may hand in a notice in advance, it’s not easy to find a Board Director to blend with. Will your Board of Directors be able to get a replacement? Will the company handle your resignation well? Will your resignation affect the goals and plans of the company? Giving these things thought may help you decide better.
Are there any other solutions? Is resigning the only option? These questions are also what you must answer before you confirm your resignation. It’s not every day that Board Directors resign. Mostly, the tenures end, and new members are put on board. However, it is up to you whether or not you wish to resign. If you brainstorm enough on your reason and other negotiations possible, you may find an alternative instead of resigning. If not, you’ll be backed by more solid reasons to resign which will also be of help. Resigning isn’t always the best option. Therefore, it is necessary to look at your options, if any, before you choose to leave.
Examine pros and cons
If you don’t find another solution and still wish to leave, weigh out the pros and cons. What it means to resign, how it looks on you professionally, etc. Also, consider whether this decision will serve as a negative element to your prospects. You don’t want to make a rash decision being on such an important level. Therefore, be neutral and even out your pros and cons before you conclude. Only you would know whether you should leave or stay depending on your reason. Examine carefully what the best thing to do is maybe.
Do you want to resign?
This is a major question to ask yourself. Do you want to resign? If you have just begun working or if you’ve been on board for years, do you want to resign? Do you want to leave this company? Do you want to leave this board? Do you want to let go of the stable opportunity you have at hand? This is something your conscience can answer. Based on your experience as a member you will be able to make a decision. However, make sure that your conscience doesn’t overpower your sense of reasoning and professional outlook of things.
What’s going to come next?
This is an imperative point to mark. You cannot possibly think of resigning from any job without a solid plan. Therefore, it is even more with the Board of Directors. Do you have a concrete plan outlined? Is there scope and potential for you once you resign? Don’t overlook these factors. They will determine your course after you have left your position.
How to resign in a professional manner?
If you’re still firm on your decision to leave the Board of Directors, there’s a method to follow. It’s not just up and out, you have to adhere to the company’s policy. In addition to that, there are general pointers you need to keep in mind.
Be professional and clear
You can’t say that you want to leave and go. Well, you can but you’re an important part of the company. You have been appointed due to certain skills and abilities. Don’t forget them or fall short of them at the last minute. Be professional in your way of resigning. Avoid any negativity towards the board or the company. Be clear about why you’re leaving and when.
Explain correctly why you wish to quit. Leave out exaggeration and biases. Remember that you are a part of the company as long as your notice period is on. You’re not just an individual with a good professional background, you’re a member of the board. Keep your explanation informative, not critical. Communicate well. Thank them for the opportunity. Express your appreciation toward the company and its members. Be formal and genuine.
Discuss with members
Leaving the Board of Directors is a huge decision. It’s not an ordinary resignation. There’s not just one department that will be affected by your resignation. The company, prospects, and shareholders together with the Board will be collectively affected. It’s only ideal to discuss your resignation with the other members. Although you may have your decision made, discuss with the rest of the Board whether it’s safe to resign as and when you have planned to.
Avoid being stuck up on your decision to leave. Although you may have made up your mind, other members may have better insights to offer. Of course, the decision depends on what you think and say. However, give the members a chance to offer their suggestions. Be open-minded about what they have to say. Understand their perspectives too. They have reasons for the welfare of the company which is why they are offering their inputs.
When you inform the members on board, it’s likely that with their opinions there will be negotiations made. Say you have an offer from another company, they may try to meet those same goals. Assume you’re not in favor of a certain policy, they may rework it. They will try to negotiate because you’re an important member. You’re valuable and therefore, they’ll bend a few rules for you.
However, they have to consider the wishes of the shareholders and company too. It only becomes ideal then that you try and twist your demands a bit and come together on an agreement. This would work better for you and the company over a resignation.
You have your responsibilities being a director on board. It becomes your duty to provide notice in advance as per the company’s and Board’s policy. Just handing in a resignation letter a few days in advance won’t do. You are required to follow a process along with the rest of the members. The board needs to be prepared and begin its search for a new member. Therefore, they need to be informed of your action to leave in advance.
This goes without saying. Abide by the rules. As per the respective policy, there will be pre-requirements. You need to follow these. Some companies have policies of acceptance of resignation, formatting, deletion of data, resolution status, and so on. As per your policy, being an educated and respected member, you must comply with these. You’re trusted and therefore, it is only ideal that you follow all that is asked of you and leave in an organized manner.
Do it the right way
Understand all the duties necessary before you leave. You may be asked to delete or hand over confidential data. Many other actions are required when you’re letting go of such an essential position in the company. Do all that is required on your part.
The most important part of your resignation. After you hand in the notice for resignation, next comes the big letter. Make sure your resignation letter is handed in on time. Also, make sure your letter is well-formatted and addressed. With clear and concise information, arranged systematically and son. Mention all the important details. Keep the note optimistic, in the best interests of the Board and the company. Be sure to avoid all negatives and maintain a formal and professional tone.
When you decide to resign is a crucial aspect. In some cases, resignation may be predicted, for instance, if you have to join another board on a particular date. However, when you’re not restricted by any timeline, pay attention to when you’re leaving. If you’re in the busy time of year or working on something grand, reconsider your resignation date. If the company already has a lot going on, professionally or among the members, give it some time. The members are already worked out. Therefore, paying attention to your resignation and looking for a new member would be more of a hassle. Be considerate of the board before you decide when to leave.
Finish what you left off
Another important duty before you resign. If you’ve suggested a strategy or policy, finish it off. If you’re dealing with a particular task or assignment, complete it and then resign. Don’t leave it midway. If there is a permanent task that you took charge of, hand it over temporarily to one of the other members till they hire a new member. Explain your duties to others so they’re not lost about your work when you leave. Avoid leaving things incomplete and stranded. you don’t want the Board to be lost without your contribution.
What does it mean for you once you’ve resigned?
So now you’ve resigned. What’s next? If you have already got a job offer, well and good. If you have another plan chalked out, that’s great. If not, don’t worry. It’s not a sin to resign even though you’re a Board Director. You can still apply for positions and jobs elsewhere. However, it won’t be in your favor, as Board director positions are not very easily left out. Yet, it’s not the end of the world. You will always find some openings with your experience and qualifications!
When all is said and done, resigning is not a bad thing when you have your reasons. Guide yourself through the process with the help of these pointers and be sure to resign in a professionally pleasant way. No hard feelings!
- Can one apply for a Board of Director position at another company after resigning?
Yes. you can choose to serve as a member of another Board of Directors. However, it will have a shift and change of its own. Moreover, one can also be re-appointed as a Board member. Although, it must be considered that unless you receive an offer upfront, acquiring the position of a Board Director will not be easy. Priority is given to inside members and chances of success would be low if you’re from elsewhere.
- Is it a good idea to resign as a Board Director?
While each person may have their reasons, it’s not ideal to resign. Being appointed as a Board member is a high opportunity and honor. It is rare for many to bag this opportunity. One should try to resonate as much as possible instead of opting to resign. Also, note that there are more cons than pros that come from a professional point of view. Once you resign unless faced with an offer, it becomes tough to get another similar role.
- What is the notice period to give and rules to follow before resigning as a Board of Directors?
There is no fixed period as such. Neither are their word-to-word rules. Although the general period revolves anytime between 7 days to a whole month. However, it may be extended depending on each company. The policy of each company and Board varies. While some may ask for approval, some may just need to be informed. Similarly, there are other rules to follow as per the company. There are a few universal laws like that of a notice period, handing in data, and so on. These too, are altered as per the company’s values and goals.