Resigning from your position as a co-ownership director is not a decision to be taken lightly. Often, it is the result of careful consideration, driven by increasing responsibilities, significant stress, or even disagreements within the board. This demanding role requires time and energy, and there may come a point when a director feels the need to step down, whether for personal or professional reasons, or simply due to fatigue. If this is your case, know that you have the right to resign, but it is essential to do so thoughtfully and in accordance with best practices.
Why resign?
There are many reasons why a director might decide to step down, including:
Regardless of the reason, it is essential to take the time to analyze the situation. A hasty resignation can sometimes worsen tensions or create a difficult gap for the co-ownership syndicate to fill.
How to prepare your resignation properly?
Once you have made your decision, it is important to take a professional and respectful approach toward the board of directors and co-owners. Here are a few steps to follow:
1. Consider the consequences of your departure
Before sending your resignation letter, take the time to evaluate the impact of your departure. Are there ongoing projects that require your contribution? Can you facilitate the transition by assisting your successor for a few weeks? Considering these aspects will allow you to leave your position on a positive note.
This decision must be carefully thought out. It cannot be made without a serious reason or at an inappropriate time, as it could disrupt the proper functioning of the co-ownership. A sudden departure could even lead to liability issues and potentially result in claims for damages. A director should, therefore, think twice before resigning impulsively.
2. Draft a clear and formal resignation letter
Your resignation must be submitted in writing and addressed to the chairman of the board of directors. Refer to a resignation letter template available at the bottom of this article, which you can use and adapt to your situation.
3. Ensure a smooth transition and inform co-owners
If possible, announce your departure gradually and offer your assistance in transferring your responsibilities to another director or a new board member. Your involvement during this phase will help facilitate adaptation and maintain stability within the syndicate.
4. Legal obligations after resignation
Updating the Registraire des entreprises du Québec (REQ)
Once your resignation is official, the co-ownership syndicate must update the Registraire des entreprises du Québec (REQ) to remove your name from the list of active directors. This update can be done via the online service "Mon Bureau du REQ" or by submitting a Current updating declaration.
What if the Syndicate delays updating your status?
If the syndicate fails to update the REQ registration within a reasonable time, you have the right to intervene by submitting a Request to update a resigned director. This form, available on the REQ website, can be submitted online or by mail.
Protection of personal information
As part of this update, certain personal information (such as your date of birth and proof of identity) may be required. If you do not wish to share these documents via email, you can request to transmit them securely, such as through an in-person meeting or a secure online portal.
5. Resignation or taking a step back?
It may be useful to ask yourself: Do I really need to resign, or is there another solution?
If your main reason for leaving is a disagreement with other directors, remember that you can always express your opposition to certain decisions without stepping down. Under article 337 of the Civil code of Québec, a director may dissociate themselves from board decisions without necessarily resigning. This allows them to register their disagreement without completely abandoning their responsibilities.
Conclusion
Resigning from a co-ownership director position is a decision that requires careful thought. While it is your right, it is essential to leave your role in a professional and organized manner to ensure a smooth transition and avoid future complications. Clear communication with the syndicate and promptly updating official records will help close this chapter smoothly.
If you are considering resigning, take the time to properly plan your departure and discuss it with other board members. Most importantly, make sure your decision aligns with your values and personal needs.
CONSULT A Resignation letter template
Me Alex Laplante, lawyer
Dunton Rainville
800 rue du Square-Victoria
Suite 4300
Montreal, Quebec H3C 0B4
Tel: (514) 866-6743
Email:[email protected]
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