When a director leaves a company, they have responsibilities. If the director owns shares in a company, there may be an agreement in place that they must sell their shares upon leaving. The director should receive a fair value for the shares, which depends on factors like any dividends paid out by the company or the current share price.

The company and shareholders may require the director to seek legal advice during negotiation. The director must inform the company and shareholders of their departure and appoint a new director to take their place.

It involves filing paperwork with appropriate authorities and updating the company’s website with the new appointment. The departing director is liable for obligations incurred while with the company and must ensure they are settled before leaving.